“The third quarter will be the hardest time to make profits!” Han Jiayu, Chairman of Dacheng (1210) Group, following attending the ground-breaking ceremony for the new plant in Guantian, Tainan, Tainan, on September 16, confessed that the high-priced raw materials (Huang Xiaoyu) Under the dual pressures of deferred destocking and the sharp depreciation of the New Taiwan Dollar, it is difficult to have a bright performance, but he changed his words, “2023 will be the explosive year of Dacheng’s revenue growth!”
Han Jiayu is calm and relaxed, because when Huang Xiaoyu’s high-priced inventory and exchange rate are attacked, the Dacheng Group he leads is not idle. From Tainan, Chiayi, Changhua, Taoyuan to Anhui on the other side, the upstream feed for agricultural and livestock products, Food processing cultivated to the downstream, covering broiler, pig and duck, eggs, vegetable meat, pet food and other production systems and brands, has invested nearly 10 billion yuan, and the firepower is fully expanded to expand the production line. The third quarter and next year will be accepted one by one.
Dacheng Group, which entered its 66th year this year, was founded in 1957 by Han Jiayu’s father Han Haoran and Mou Qingshan. It started from the “Taidong Agricultural Products Processing Factory” and made soybean oil and soybean cakes for its business; later, “Taidong” expanded Established “Dacheng Oil”, took over “Changcheng Flour” in Nanzi, Kaohsiung, and merged into “Great Changcheng Enterprise”. The stock market was listed in 1978, which started a development course of a decade.
In 2001, Dacheng Group officially handed over the baton. The eldest son Han Jiayu served as the chairman of the group, the second son Han Jiachen was the vice chairman of Dacheng, and the third son Han Jiahuan was the president of Dacheng. The two were jointly responsible for China and overseas business. The four brothers work together to coordinate the layout of the catering business.
Since 2013, Han Fanghao, the son of Han Jiachen, joined the company. He first worked with his father in a joint venture between North China and Din Tai Fung. In 2016, he returned to Taiwan to join the Group’s Egg Products Division. At the end of June this year, he took over the position of general manager. As for Han Jiayu’s “two nephews” who have entered the group’s service, the other is Han Jiahuan’s son Han Fangzu, who serves as the special assistant to the chairman.
Today’s Dacheng Group is vertically integrated from breeding, breeding, feed, electric slaughtering, processing, etc. in livestock and aquatic products, and its oil business has expanded to catering and property management. And six major business groups in East Asia, from Taiwan, mainland China, Indonesia, Vietnam, Malaysia, Cambodia, etc., there are more than 100 subsidiaries under it, and it has become a leader in agriculture, animal husbandry and food.
Opening the latest financial report of Dacheng, in August this year, the single-month revenue exceeded the 10 billion mark for the first time, and the consolidated revenue was 10.578 billion yuan, also a record high, with an annual increase of 34%; 11%. Dacheng has maintained steady development and has distributed dividends for 35 consecutive years. The highest cash yield in the past five years has reached 5.55%, and this year it is lower than 3%.
When the U.S. Federal Reserve’s violent interest rate hike brought headwinds to the global stock market, the raw material cost prices of soybeans, wheat, and corn might not return to the previous level, and the depreciation of the New Taiwan dollar exchange rate led to a large increase in the amount of purchases denominated in U.S. dollars. The bottom line of interest rates above 10%” may be a challenge for Han Jiayu to enter a new milestone in his 21-year tenure as chairman of Dacheng.
Han Fanghao, who took over as the general manager of Dacheng in June this year, said, “In the early days, the egg market was relatively traditional. When the Agricultural Committee promoted comprehensive egg washing, we felt that this track was worth playing, and we might continue to invest, and the production capacity was still low. The development of egg washes has only just begun without reaching the supply of eggs in Taiwan.”
Han Fanghao took the market competition into different tracks as an example, as an observation for Dacheng to decide whether to invest or not. “Actually, many things are unpredictable. We are moving forward in the general direction and the big plan. The chairman (Han Jiayu) has made a lot of assessments and is also filling in some gaps in the group. Regarding the changes in the external international situation, at this stage, we need to be very dexterous. to face it.”
