Tongwei Co., Ltd. released its 2013 annual report. According to the report, the company achieved a total revenue of RMB￥15.18986 billion yuan, a year-on-year increase of 12.59%; operating profit of ￥337.5422 million yuan, a year-on-year increase of 295.87%; net profit attributable to shareholders of the listed company RMB￥ 305.871 million, a year-on-year increase of 218.72% .

Total feed production output
The company’s feed output reached 3.9453 million tons , an increase of 6.15% over the previous year, among which aquatic feed reached 2.2231 million tons, an increase of 4.63% over the previous year; The sales of shrimp and specialty feed enjoyed a growth of 24.30% over the previous year; livestock and poultry feed sales reached 1.722,3 million tons, an increase of 8.19% over the previous year; pig feed 1.0169 million tons, nearly a three-year averaged growth rate of 22.88%.

Total sales volume (2008-2013)

Feed has been Tongwei’s core business. The feed production has been on the rise since 2008 except the decrease in 2010. The decrease was partially affected by weather, raw material price increase and influence of the sector, and partially by the company’s management focus and poor marketing strategies. The aquafeed production volume of 2010 was 1.38 million tons, a year-on-year decrease of 6.7%.

The 2013 growth rate of feed production hit the record low since 2008 (except 2010), while the aquafeed growth rate of 2012 arrived at 29%. The main reasons for slower growth are: 1. Slower growth for the feed sector; 2. Worsening situation for aquaculture in 2013; 3. Fierce competition in the sector.

TW’s sales volume vs. China’s total

Due to internal and external reasons, Tongwei’s production volume and market share decreased and dipped to a low point of 1.7%, and returned to 2.06% in 2013.

Aquafeed production

As Tongwei’s core business, Tongwei feed includes swine feed, poultry feed and aquafeed, which occupies over 50% of the total production. The production of aquafeed in 2010 reached 1.38 million tons, a decrease of 6.7% over the last year.

The total production of aquafeed in 2013 reached 2.2231 million tons, an increase of 4.6% over the last year- the lowest growth rate since 2008 (except 2010). The aquafeed growth rate of 2012 arrived at 29%. The main reasons for growth slowdown are: 1. The sector was going through a growth slowdown stage; 2. The situation of aquafeed in 2013 was worsening; 3. Fierce competition in the aquafeed sector.

The total aquafeed production of 2013 reached 19 million tons. Production of Tongwei Co., Ltd. reached 2.2231 million tons, accounting for 11.7% of China’s total, as the peak value since 2008.

Market Distribution

Central Southern China (Henan, Hubei, Guangdong, Guangxi and Hainan) has been Tongwei’s primary market. The area tallied RMB￥6.82 billion in sales, occupying 39% of China’s total. Southwest Area contributed RMB￥5.25 billion, occupying 20% of the total business. East China ranks the third and accounts for 21% of the total.

North and Northeast China was the only area with its performance declining from RMB￥1.4 billion in 2012 to RMB￥1.27 billion in 2013.