Sun Daily Farm realized a year-on-year growth of 94.57% in operating profit by exploring distribution channels of brand

By CnAgri2017-06-13 09:40:36 Print

Sun Daily Farm is a high-quality egg manufacturer having strong technology strength, perfect market channels, relatively mature production management system, higher brand influence and consumer awareness in domestic layer industry, builds whole industrial chain of “GP bird breeding→parental bird breeding→commercial bird feeding→feed production→egg cleaning and processing→unified sale”, and produces green eggs in accordance with “seven unification” breeding management standards and industrialization though. By the end of 2016, Sun Daily Farm’s layer inventory has reached about 5 million birds, annually producing about 78,600 tons eggs.

From the operating data, in 2016 reporting period, the company realized operating revenue and operating profit of 737 million yuan and 41.33 million yuan, increasing 19.48% and 94.57% year on year; and the net profit attributable to shareholders of the company was 49.57 million yuan, up 29.00% year on year. The main reasons for the increase in operating revenue and profit firstly was the growth of egg production (up 38%), the expansion of market channels and further optimization of channels, products and customer structure, which made the sales volume of eggs increased 34.08% year on year in 2016; secondly was the price decline of raw materials (corn, soybean meal, etc.) which make the production cost of egg products decreased 5.54% year on year; thirdly was that the management cost decreased 15.21 million yuan over the previous year; in addition, due to further improvement of breeding technology and disease prevention technology, the rejection rate slid down.

As for operating revenue structure, the sales of egg products accounted for over 70%, the sales of chicks occupied 13.01%, and the sales of eliminated chicken and young chicken respectively accounted for about 5%.

Sun Daily Farm has always focused on high-end egg market, positioning high-end consumer groups which attach great importance to egg safety and quality and are less sensitive to the prices of egg products, low, so the company's brand egg prices have been at a high level and is less impacted by market conditions.