Dachan Aims for Growth This Year by Increasing Food Processing Share

Dachan Chairman Han Chia-yu stated that the Chinese market is facing weak demand and intense price competition, so the company will continue to increase the proportion of food processing, which currently accounts for over 50% of its business. With new production capacities such as the Taiwan native chicken processing plant coming online, rapid growth in Vietnam, global sales of Indonesian aquatic products, and continued layout in the US market, the company aims for better performance this year than last. Dachan held its shareholders' meeting today and approved a cash dividend of NT$3 per share. Han noted that the world has experienced the impact of COVID-19, the Russia-Ukraine war, and US tariff policies, leading to drastic market changes, supply chain disruptions, and energy price fluctuations, creating more uncertainty for business operations. Han pointed out that the Chinese market faces significant challenges, and the intense price competition is expected to last for several years. Currently, revenue from Taiwan, mainland China, and Southeast Asia each accounts for one-third of the total, with Taiwan and Southeast Asia showing strong profitability compared to China. Vietnam is growing rapidly, and the Indonesian aquatic business is expanding globally. In the US, where there is high acceptance of Asian food, Dachan will continue to increase investment. In Taiwan, besides maintaining core businesses like feed, eggs, and chicken, the company is promoting multiple expansion projects. The native chicken processing plant has started production with positive market feedback. Dachan is also promoting its 'Four Abilities' strategy, including health product R&D, vaccine development, pet food, and health food. Additionally, it has established 'An-Shi-Da' to focus on the B2B food ingredient market, with plans to gradually cultivate the B2C market.