Securities code: Fujian Sunner Development Co.Ltd(002299) securities abbreviation: Fujian Sunner Development Co.Ltd(002299) Announcement No.: 2022018 Fujian Sunner Development Co.Ltd(002299) 2021 annual report summary
1、 Important note: the summary of this annual report comes from the full text of the annual report. In order to fully understand the company's operating results, financial status and future development plan, investors should carefully read the full text of the annual report in the media designated by the CSRC. Tips on non-standard audit opinions □ applicable √ not applicable to the profit distribution plan of common shares or the plan of converting accumulation fund into share capital in the reporting period considered by the board of directors √ applicable □ not applicable whether to convert accumulation fund into share capital □ yes √ no
The company's profit distribution plan for ordinary shares reviewed and approved by the board of directors is: Based on the total share capital registered on the equity registration date at the time of equity distribution minus the shares that have been repurchased in the company's special repurchase account, the company will distribute cash dividends of 3.00 yuan (including tax) to all shareholders for every 10 shares, and give bonus shares of 0 shares (including tax), and will not convert the accumulation fund into share capital. Preferred stock profit distribution plan for the reporting period adopted by the board of directors □ applicable √ not applicable II. Basic information of the company 1. Company profile
Stock abbreviation Fujian Sunner Development Co.Ltd(002299) stock code Fujian Sunner Development Co.Ltd(002299)
Shenzhen Stock Exchange
Contact person and contact information secretary of the board of directors securities affairs representative
Name: Liao Junjie, Zeng Limei
Office address: Shilipu Shengnong headquarters office building, Guangze County, Fujian Province
Fax: 05997951250
Tel: 05997951250
E-mail [email protected]. [email protected].
2. Introduction to main business or products during the reporting period
The company belongs to the white feather broiler production and meat food deep processing industry. White feather broiler is the abbreviation of white feather fast large broiler. China's white feather broiler industry began in the 1970s. It is a new industry with the highest degree of modernization, standardization and industrial scale in China's agricultural industry.
In recent years, with the continuous improvement of people's living standards and the acceleration of the pace of life, consumers' food consumption concept has developed from being satisfied with food and clothing to pursuing high-quality, convenient and fast consumption. Therefore, there is an increasing demand for meat products with high nutritional value, convenient consumption, safety and hygiene. However, the total per capita consumption of meat products in China is still far from that in developed countries, and there is a huge space for development. Among meat products, chicken has become the second largest consumption of meat in China because of its advantages of one high and three low (high protein, low fat, low cholesterol and low calories), short production cycle, high feed conversion rate, significant economic benefits and environmental friendliness. Moreover, the proportion of meat consumption structure in China has increased rapidly year by year, which has a very broad development prospect. 1) Industry overview and development trend
(1) About total scale
White feather broiler is the most accepted meat variety in the world, accounting for about 40% of all meat consumption structures in the world. At the same time, from the breakdown of the proportion structure, the global chicken production in 2021 was about 99.9 million tons (mainly white feather broiler production), and the pork production was about 101.48 million tons. The global chicken and pork production has maintained a ratio of about 1:1 for many consecutive years.
From the perspective of China's meat structure, China's chicken production accounts for about 30% of China's total meat production. In 2020, the output of chicken in China will be about 17.17 million tons (including 9.77 million tons of white feather chicken, 5.47 million tons of yellow feather chicken and 1.93 million tons of 817 chicken), and the output of pork will be about 41.13 million tons. By 2021, the output of chicken in China will be about 17.43 million tons (including 10.2 million tons of white feather chicken, 4.99 million tons of yellow feather chicken and 2.24 million tons of 817 chicken), Pork production recovered more than expected, increasing to 52.96 million tons.
Therefore, no matter from the proportion of chicken in meat structure or the proportion of chicken and pork production, China's chicken has a high growth space in the future.
(2) About medium and long-term growth
1) China's per capita consumption of chicken is at a low level in the world
From the perspective of per capita chicken consumption, at present, China's per capita chicken consumption is less than 10kg. Compared with the per capita chicken consumption of nearly 50kg in the United States, China is only 1 / 5 of that of the United States; Globally, China's per capita chicken consumption is also at a low level in the world, only 1 / 2 of the world average. According to FAO data, the consumption of chicken per capita in mainland China is also far lower than that in Chinese mainland Taiwan and 33 kg in Japan and 18 kg in Japan.
2) The improvement of catering chain rate will accelerate, and the superposition of the impact of the epidemic will accelerate the clearance of individual catering, which is expected to boost the demand for standardized food materials
Since 2016, due to the sharp rise in the rent of Chinese shops and the increase in personnel wages, the profit space of catering stores has been significantly compressed, forcing the chain rate of catering stores to increase. At the same time, based on the rise of takeout, the optimization of catering supply chain and the improvement of store management ability, the operation efficiency of chain restaurants is improved and the rapid replication ability of chain restaurants is improved. According to the report on China's chain catering industry in 2021, the chain rate of China's catering industry increased from 12.8% to 15.0% from 2018 to 2020, and the chain rate of the industry is increasing year by year. However, at present, the chain rate of catering in China is still far lower than 54% in the United States and 49% in Japan, and there is room for considerable improvement in the future.
At the same time, chain catering enterprises have a large demand for semi-finished products with a high degree of standardization. Therefore, considering only the improvement of catering chain rate, it is also expected to promote the continuous growth of semi-finished products demand in the catering industry in the future.
3) Catering industry and household consumption drive the development of chicken deep processing industry
In 2010, the income of the national catering industry was 1.76 trillion yuan, increasing to 4.69 trillion yuan by 2021, with a compound annual growth rate of 9%. According to the five-year (20212025) work plan of the China Cuisine Association, the income of China's catering industry is expected to increase by more than 10% on average during the 14th Five Year Plan period.
Considering the rise of central kitchen mode in recent years, the penetration rate of deep processing b-end has increased rapidly, and the growth of C-end has also increased significantly under the catalysis of the epidemic.
At present, the company's deep-processing food sales channels are mainly catering and household consumption, and the b-end and C-end have been fully covered. Relevant data show that at present, the scale ratio of b-end to C-end in China's deep processing market is about 8:2, of which b-end catering enterprises are the mainstream. As the operation of deep-processing enterprises is similar to the central kitchen mode, it can well solve the pain points of the catering industry with too large back kitchen area and too high labor cost, and catering enterprises have strong demand for it.
From the perspective of demand, the b-end external central kitchen mode of "deep processing + catering" has broad development prospects and is expected to bring great b-end penetration space for deep-processing food. The current social situation of "lazier" and "busier" is also expected to bring the prospect of high-speed growth of C-end. In particular, the low price elasticity of C-end has brought greater profit space to deep processing enterprises. Compared with takeout, deep processed food not only has the attribute of convenient and fast takeout, but also excels in health, delicacy, sense of operation experience and other aspects, and is more cost-effective. In a certain sense, takeout is also one of the downstream catering channels of deep processing, which will not squeeze out a large number of deep-processing food. Overall, the deep processing industry is expected to be catalyzed by the high growth of demand at the b-end and C-end, and the industry space is expected to expand rapidly and maintain rapid growth.
From the supply side, the development of cold chain logistics has further improved the infrastructure of the deep processing industrial chain. The popularity of household refrigerators, microwave ovens and other electrical appliances has also provided basic conditions for the promotion of deep-processing food. The emerging new retail model has not only broadened the sales channels of deep-processing food, but also accelerated consumer education. In addition, under the catalysis of the epidemic, catering enterprises have been laid out one after another, which has brought great market attention to the industry, and the cultivation of C-end market has been further accelerated.
Therefore, the deep processing industry is expected to maintain rapid growth under the catalysis of both supply and demand, and the market space is broad in the future.
4) Chicken fast food chain has become the mainstream: the rapid expansion of chicken fast food brands has driven the demand for chicken and chicken deep-processing food
KFC, McDonald's and other chain catering enterprises seize the market through channel sinking, realize large-scale and rapid development, and continuously improve the catering chain rate. In recent years, China's fast-food chains have developed rapidly. From 2015 to 2019, the total number of stores of Chinese chain catering enterprises increased from 23700 to 34400, with an average annual compound growth rate of 9.7%. From 2015 to 2019, the income of Chinese chain catering enterprises increased from 152661 billion yuan to 223.45 billion yuan, with an average annual compound growth rate of 10%. Overall, it shows a sustained growth trend. Among them, the scale expansion of chicken fast food chain brands has contributed an important force. Among the top ten national fast food restaurants in 20202021, five fast food restaurants mainly focus on chicken food, and the other five also provide chicken related products. The core reason is that China's poultry products are relatively mature and stable supply chain.
With the standardization of food materials in the catering supply chain and the upgrading of business formats of supermarkets, the proportion of processed chicken products in the total output of chicken is expected to gradually increase, and the scale expansion of the chicken products industry is expected to accelerate.
5) Changes in dietary habits of young consumers drive high growth in chicken demand
"Healthy China" has become a national strategy. With the development of society, dietary health has been upgraded from "satiety stage" and "good food stage" to "nutrition stage". The number of fitness people in China is growing rapidly. According to the 2020 China fitness industry data report, the number of fitness people in China will reach 70.29 million in 2020, compared with the same in 2019
An increase of 3.19% over the previous year. With a total population of 1.4 billion, China's fitness population penetration rate is 5.02%. Although there is a gap of about 3 times compared with 15.2% in the United States and 1.6 times compared with 8.1% in Europe, from the trend, the gap between China, the United States and Europe is gradually narrowing. In the age distribution of sports fitness population, in 2020, the population aged 18-25 accounted for 19.8%, the population aged 25-35 accounted for 43.3%, and the total population aged 18-35 accounted for 63.1%. Fitness people mainly focus on increasing muscle and reducing fat. With the deepening of the concept of healthy diet, chicken products are deeply loved by fitness people because of their characteristics of high protein, low fat, low cholesterol and low calories. The growth of fitness people and the improvement of health awareness will become an important driving force for the growth of chicken consumption.
(3) Current situation of the industry
1) The proportion of chicken in meat consumption increased
From 2019 to 2020, due to the impact of African swine fever, there was a huge gap in pork supply. Chicken, as the best alternative source of animal protein, has advantages in supplement speed and economic benefits over other animal proteins. In recent years, the consumption proportion of chicken in China's meat protein has increased rapidly.
2) The industry is at the bottom of the cycle
The white feather broiler industry has experienced a sharp decline due to the impact of epidemic and other factors after experiencing the high point of the cycle from 2019 to 2020. At present, it is in the bottom stage of the industry. In 2021, affected by the sharp rise of feed prices such as corn and soybean meal, the breeding cost increased significantly; Combined with the impact of covid-19 epidemic, the consumption growth is weak, and the sales price of chicken remains depressed. The dual factors jointly lead to the loss of the industry. In addition, feed prices rose sharply again after the Spring Festival in 2022, and covid-19 epidemic in China showed a situation of many points, wide range and frequent occurrence, which directly prompted the industry to face a more severe situation and exacerbated losses.
3) The production capacity is reduced and the industry concentration is improved
Under the influence of the downward cycle of the white feather chicken breeding industry, the small and medium-sized enterprises in the industry do not have advantages in capital, scale, brand, channel and management. It is difficult to face the severe industry situation, resulting in their production reduction or even withdrawal. After the Spring Festival in 2022, the breeding chickens in the industry are eliminated in a large area in advance. These factors will lead to the decline of the supply of the industry in the future; On the contrary, the anti risk ability of large enterprises is much higher than that of small and medium-sized enterprises. With the accelerated liquidation of small and medium-sized enterprises in the industry, the industry concentration of white feather chicken breeding industry will be further improved in the future, and large enterprises will have more advantages in cost control and chicken bargaining. 2) Main businesses of the company during the reporting period
1. Company base layout
The company's production base is mainly located in Fujian and Jiangxi, and has set up innovation marketing centers and product R & D centers in Zhejiang and Shanghai. At present, the company's white feather chicken breeding capacity has been close to 600 million feathers, and the total food deep-processing capacity built and under construction has exceeded 433200 tons. The products have a wide range of radiation and are sold abroad.
2. Integrated whole industry chain layout
The company has established a broiler industry chain layout integrating feed processing, seed source cultivation, breeding chicken breeding of grandparents and parents, egg hatching, broiler feeding, broiler slaughtering and processing, cooked food processing and other links. At present, it is the most complete and supporting industry cluster in the global white feather broiler industry, ranking first in Asia and seventh in the world in the ranking of enterprises in the whole white feather broiler industry chain.
3. The company's main products (1) upstream broiler breeding and processing sector. The main products of the company's upstream sector are frozen and fresh split raw chicken. Some products are shown below
