一张纸巾引发的品牌危机，正在撕开恒安国际的经营困局。5月8日，有网友爆料称，在某电商平台咨询心相印促销活动时，遭遇客服辱骂并被提议"补偿 1000元冥币"，事件迅速登上热搜。 网传聊天记录截图显示，消费者正在咨询相关产品促销活动时，客服突然发送大段侮辱性言论，包括诅咒性语句和人身攻击。例如，有消费者询问 "两件均 价44.9元" 的活动详情时，客服回应称 "有本事你就去投诉，我们客服经常这样回复，你要是投诉成功了，我们的店铺是怎么开到现在的"。 另有媒体报道称，有多名网友同时证实，他们均遭遇同一客服账号的辱骂，且客服在对话中多次强调 "人工客服" 身份，态度极为恶劣。 随着舆论的发酵，恒安心相印品牌方回应媒体称，"账号存在异常登录"，"目前正在紧急核实，会对相关人员进行顶格处罚，后续会对消费者做出补偿"。 但截至5月12日，GPLP犀牛财经也未能从公开渠道查询到品牌方包括核实的最新情况、补偿消费者的具体方案等信息。有律师指出，无论账号是否被盗，品 牌方都需为客服行为承担法律责任。 更值得注意的是，风波背后心相印母公司恒安国际的业绩颓势更令人担忧。2024年财报显示，恒安国际营收和净利润分别下滑4.6%和17. ...

(Incorporated in the Cayman Islands with limited liability) Stock code 股份代號: 1044 (於開曼群島註冊成立的有限公司) 2024 ANNUAL REPORT 年報 202 4 Corporate Mission 企業使命 GROWING WITH YOU FOR A BETTER LIFE 「追求健康、 你我一起成長」 has always been the mission of Hengan International. We will continue to adhere to our corporate spirit of "Integrity, Diligence, Innovation and Dedication". Our goal is "to build an effective corporate management and to develop a high quality, ethical and enthusiastic staff team". By building an excellent corp ...

Core Viewpoint - The financial performance of Hengan International has declined, with both revenue and net profit decreasing in 2024, primarily due to rising raw material costs and negative public sentiment surrounding sanitary napkins [2][3]. Financial Performance - In 2024, Hengan International reported a revenue of 22.669 billion yuan, a year-on-year decrease of 4.62% [2]. - The net profit for the same period was approximately 2.299 billion yuan, down 17.93% year-on-year [2]. - The tissue paper business, which accounts for over 50% of revenue, generated 13.422 billion yuan, a decline of about 2.37% [2]. - The sanitary napkin segment saw the largest drop, with revenue of 5.678 billion yuan, down 8.09% year-on-year [2]. - The only growth came from the diaper segment, which achieved revenue of 1.261 billion yuan, an increase of 0.52% [2]. Cost Issues - Hengan International attributed its performance decline to rising raw material prices, particularly the cost of wood pulp, which increased in the second quarter, affecting third-quarter inventory costs [3]. - Overall gross profit fell by approximately 8.6% to about 7.325 billion yuan, with the gross margin decreasing to around 32.3% [3]. - The company faced significant pressure from rising raw material costs, which have been a recurring issue impacting profitability [3]. Industry Sentiment - Recent controversies regarding the safety and quality of sanitary napkins have negatively affected Hengan International's performance, with the sanitary napkin segment being the most impacted [4]. - Multiple brands, including Hengan's competitors, have faced scrutiny over product quality, leading to consumer doubts about safety standards [4]. - Analysts suggest that the entire sanitary napkin industry is under pressure due to these safety concerns, which could further impact brand development and consumer trust [4][5].

Core Viewpoint - The paper towel giant Hengan International is facing significant challenges due to rising costs and intense price competition in the industry, leading to a decline in both revenue and net profit for 2024 [1][2][4]. Financial Performance - Hengan International reported a revenue of 22.67 billion RMB for 2024, a decrease of 4.6% compared to the previous year [2][4]. - The net profit attributable to shareholders was 2.30 billion RMB, down 17.9% year-on-year [2][4]. - The gross profit margin fell to 32.3%, down 1.4 percentage points from the previous year [4]. Business Segment Analysis - The paper towel segment, despite generating over 14.1 billion RMB in revenue, reported a rare loss of 245 million RMB [5][9]. - The sanitary napkin segment, with a gross margin exceeding 60%, has become a key profit driver for the company [1][9]. Market Conditions - The domestic market for daily necessities is becoming increasingly competitive, with many brands engaging in aggressive price promotions, leading to a decline in average selling prices [4][7]. - The cost of raw materials, particularly wood pulp, has increased, impacting profit margins [4][7]. Strategic Response - Hengan International is focusing on diversifying its product offerings and enhancing high-margin products to offset the weak performance in the paper towel segment [1][9]. - The company is emphasizing the development of its sanitary napkin business, which has shown strong profitability despite a slight revenue decline [9][10]. - Hengan International plans to upgrade its product lines and increase the penetration of high-end products to mitigate the effects of price competition in the paper towel market [10].

Core Viewpoint - The company, Hengan International, reported a significant decline in net profit by approximately 18% for the year ending December 31, 2024, primarily due to a decrease in overall gross profit and a competitive market environment [1][3]. Financial Performance - Revenue for 2024 was RMB 22.67 billion, a decrease of 4.62% compared to RMB 23.77 billion in 2023 [2][3]. - Operating profit fell by 15.7% to RMB 3.35 billion, attributed to the decline in overall gross profit [2][3]. - Net profit was approximately RMB 2.30 billion, down 17.93% from RMB 2.80 billion in the previous year [2][3]. - The proposed final dividend is RMB 0.70 per share, unchanged from the previous year [2]. Gross Margin and Profitability - Overall gross profit decreased by about 8.6% to approximately RMB 7.33 billion, with the gross margin dropping to 32.3% from 33.7% in 2023 [3][4]. - The company anticipates a cautious approach to promotional spending in 2025, with expectations for high-end products to continue showing significant growth [3]. Business Segment Performance Sanitary Napkin Business - Revenue from the sanitary napkin segment was RMB 5.68 billion, down 8.09% year-on-year [4][6]. - The market for sanitary products is highly competitive, with price promotions affecting sales [6]. - Despite the decline, the gross margin for sanitary napkins remained stable at approximately 63.7% [6]. Diaper Business - The diaper segment saw a slight increase in revenue to RMB 12.6 billion, up 0.5% from the previous year [11][12]. - The high-end product "Q MO" experienced significant growth, with sales reaching approximately RMB 5.48 billion, a year-on-year increase of 20.1% [11][12]. - The gross margin for the diaper business improved significantly to approximately 45.4% [12]. Tissue Paper Business - Revenue from the tissue paper segment was approximately RMB 134.22 billion, a decrease of about 2.4% [9]. - The gross margin for tissue paper products fell to approximately 18.9% from 21.7% in 2023, impacted by increased promotional expenses and raw material price fluctuations [9]. Wet Wipes Business - The wet wipes segment achieved a significant revenue increase of 30.7%, surpassing RMB 1.2 billion [10]. - The gross margin for wet wipes was the highest among tissue products at 50.7% [10]. Market Trends and Strategies - The domestic consumer market remains stable, but there is a need for improved consumer spending capacity and willingness [3]. - The company is focusing on high-quality personal care products and adapting to fragmented sales channels, with e-commerce and new retail sales accounting for 34.1% of total sales [3]. - The company plans to continue promoting high-end products and enhancing its market position in the face of intense competition [6][11].

Financial Performance - Total revenue for the year ended December 31, 2024, was RMB 22,669,215, a decrease of 4.6% compared to RMB 23,767,936 in 2023[3] - Operating profit decreased by 15.7% to RMB 3,354,591 from RMB 3,977,931 in the previous year[3] - Profit attributable to equity holders of the company was RMB 2,298,535, down 17.9% from RMB 2,800,533 in 2023[3] - Basic and diluted earnings per share decreased by 16.6% to RMB 2.015 from RMB 2.415 in the previous year[3] - The gross profit margin decreased to 32.3% from 33.7% in 2023[3] - The group reported total revenue of RMB 22,669,215 thousand for the year 2024, with a breakdown of RMB 5,677,965 thousand from sanitary napkin products, RMB 1,260,631 thousand from diaper products, RMB 13,422,445 thousand from tissue products, and RMB 2,308,174 thousand from other categories[20] - The group's operating profit for the year was RMB 3,354,591 thousand, with a pre-tax profit of RMB 2,971,791 thousand and a net profit attributable to equity holders of RMB 2,298,535 thousand[20] - The group achieved a total profit of RMB 2,296,604 thousand for the year, after accounting for income tax expenses of RMB 675,187 thousand[20] Assets and Liabilities - Total assets decreased to RMB 39,804,411 from RMB 40,215,901 in 2023[9] - Total liabilities decreased to RMB 18,658,830 from RMB 19,586,050 in the previous year[11] - Cash and bank deposits decreased to RMB 14,261,723 from RMB 18,189,943 in 2023[9] - The group’s total liabilities were RMB 19,586,050 thousand in 2023, compared to RMB 18,658,830 thousand in 2024, showing an increase of about 5%[26] - The total assets as of December 31, 2023, amounted to RMB 40,215,901 thousand, a decrease from RMB 39,804,411 thousand in 2024, reflecting a reduction of approximately 2.5%[26] Dividends - The company proposed a final dividend of RMB 0.70 per share, unchanged from the previous year[3] - The board declared a final dividend of RMB 0.70 per share, maintaining a stable total dividend payout of RMB 1,626,970,000[53] - The total dividend payout for the year was RMB 1,626,970,000, unchanged from the previous year[40] Sales and Revenue Breakdown - The sales revenue from the sanitary napkin business recorded a decline of about 8.1% to approximately RMB 5,677,965,000, accounting for about 25.0% of total revenue[55] - The sales revenue for the tissue business decreased by approximately 2.4% to about RMB 13.42 billion in 2024, down from RMB 13.75 billion in 2023, primarily due to increased promotional expenses exceeding 10% and a significant drop in raw paper sales by over 26%[59] - The wet wipes business recorded a significant revenue increase of 30.7% to approximately RMB 1.22 billion in 2024, up from RMB 931 million in 2023, capturing about 9.1% of the tissue business sales[63] - The diaper business sales rose by approximately 0.5% to about RMB 1,260,631,000, accounting for about 5.6% of total revenue[67] Market and Sales Strategy - E-commerce and new retail sales accounted for approximately 34.1% of total sales, up from 30.1% in 2023, with a year-on-year sales growth of about 8.0%[51] - The company plans to continue its multi-channel sales strategy and brand optimization, expecting stable revenue in 2025[50] - The company is focusing on high-quality personal care products and expanding its market presence through e-commerce and new retail channels[50] - The company plans to expand its new retail channel share and develop high-quality products while maintaining stable pricing to promote long-term growth and solidify its leading position[58] - The company aims to enhance its market leadership in tissue and hygiene products while focusing on three main business areas: tissue, sanitary napkins, and diapers, to improve brand image and seize opportunities in the "new retail" era[107] Research and Development - The group’s research and development expenses decreased to RMB 209,638 thousand in 2024 from RMB 339,836 thousand in 2023, a reduction of about 38%[29] Financial Management - Financial expenses totaled RMB 567,859,000 in 2024, a decrease of 14.2% from RMB 661,562,000 in 2023[31] - Income tax expenses amounted to RMB 675,187,000 in 2024, down 15.4% from RMB 798,000,000 in 2023[33] - The group recorded an operating foreign exchange loss of approximately RMB 170 million, similar to RMB 180 million in the previous year, primarily due to the depreciation of the RMB against the USD and HKD[80] Corporate Governance and ESG - The company emphasizes the importance of corporate governance and has adhered to the principles of the corporate governance code as per the Hong Kong Stock Exchange, with a commitment to high standards of accountability and transparency[116] - The company achieved an ESG rating upgrade to "A" in 2024 and was included in the Hang Seng Sustainable Development Corporate Benchmark Index for the first time[89] - The company has established a four-tier ESG governance structure to ensure stakeholder value creation and social responsibility[90] - The company is committed to sustainable supply chain practices and has implemented a supplier behavior code to promote ESG performance among suppliers[101] Employee and Operational Efficiency - The group employed approximately 24,000 staff members as of December 31, 2024, with a focus on improving employee compensation and efficiency[83] - The total training hours for employees exceeded 480,000 hours, with 125 individuals promoted to management positions[98] - The company will continue to invest in building a professional and youthful team to improve execution efficiency and operational strategies[107] Future Outlook - The company plans to expand production capacity and upgrade technology in various regions, including establishing a new hygiene product base in Fujian and expanding tissue production capacity in Hunan and Guangdong, with some new capacity expected to be operational by 2025[107] - The company plans to maintain stable pricing strategies amidst ongoing competitive pressures in the domestic hygiene products market in 2025[104] - The company aims to enhance its gross margin by controlling promotional expenses and increasing the proportion of high-end products[104]

Core Viewpoint - UBS reports that despite an increase in market share for Hengan in the tissue paper sector, a decline in sales revenue may be attributed to increased promotional expenses leading to pricing pressure on products [1] Group 1: Sales and Revenue - Management expects stable sales and profits through 2025, with slight growth anticipated in tissue and diaper businesses, while sanitary napkin sales are projected to decline modestly [1] Group 2: Earnings Forecast and Target Price - UBS has revised down Hengan International's earnings forecasts for 2024 to 2026 by 10% to 17% and has lowered the target price from HKD 31.3 to HKD 28.1, while maintaining a "Buy" rating [1]

Financial Performance - Revenue for the six months ended June 30, 2024, was RMB 11,835,893, a decrease of 3.0% compared to RMB 12,204,605 in 2023[15]. - Gross profit margin improved to 33.3% in 2024 from 31.0% in 2023[15]. - Operating profit increased by 11.4% to RMB 1,895,891 from RMB 1,701,681 in the previous year[15]. - Profit attributable to shareholders rose by 14.9% to RMB 1,408,992 compared to RMB 1,225,768 in 2023[15]. - Basic and diluted earnings per share increased to RMB 1.234 from RMB 1.055 in 2023[15]. - Profit for the period increased to RMB 1,403,267,000 in 2024 from RMB 1,226,901,000 in 2023, representing a growth of approximately 14.4%[25]. - Total comprehensive income for the period was RMB 1,421,713,000 in 2024, up from RMB 1,302,471,000 in 2023, reflecting a growth of approximately 9.1%[25]. - The company reported a significant increase in borrowings, with proceeds from borrowings amounting to RMB 19,487,199 in 2024, up from RMB 13,535,887 in 2023, marking an increase of about 43.8%[38]. - The company paid dividends of RMB 797,245 in 2024, slightly down from RMB 813,485 in 2023, a decrease of about 2.0%[38]. Assets and Liabilities - Total assets increased to RMB 46,430,098,000 as of June 30, 2024, compared to RMB 40,215,901,000 at the end of 2023, marking a rise of about 15.5%[30]. - Cash and bank balances rose significantly to RMB 21,023,706,000 in 2024 from RMB 18,189,943,000 in 2023, an increase of approximately 10.1%[30]. - Non-current assets grew to RMB 17,242,475,000 in 2024, up from RMB 13,405,939,000 in 2023, indicating a growth of around 28.0%[28]. - Borrowings increased substantially to RMB 18,258,004,000 in 2024 from RMB 13,907,195,000 in 2023, reflecting a rise of approximately 31.5%[30]. - The Group's total liabilities as of June 30, 2024, were RMB 25,361,328,000, with borrowings constituting RMB 20,670,121,000[103]. Cash Flow and Investments - Cash generated from operations for the first half of 2024 was RMB 1,942,392, down from RMB 2,298,556 in 2023, indicating a decrease of about 15.6%[34]. - Net cash generated from operating activities was RMB 1,558,348, compared to RMB 1,938,954 in the previous year, reflecting a decline of approximately 19.6%[34]. - The net cash used in investing activities was RMB 6,520,453, compared to RMB 2,709,232 in the previous year, indicating a significant increase in cash outflow for investments[34]. - Long-term bank time deposits surged to RMB 5,051,445,000 from RMB 1,438,163,000, representing a significant increase of about 251.5%[142]. - Total cash and bank balances reached RMB 26,075,451,000, compared to RMB 19,628,406,000, indicating a growth of approximately 32.9%[142]. Segment Performance - The Group's total revenue for the six months ended June 30, 2024, was RMB 11,835,893,000, with segment revenues of RMB 3,146,946,000 from sanitary napkin products, RMB 711,624,000 from disposable diaper products, and RMB 6,950,578,000 from tissue paper products[103]. - The Group's segment profit for sanitary napkin products was RMB 1,157,207,000, while disposable diaper products and tissue paper products reported segment profits of RMB 165,432,000 and RMB 29,773,000, respectively[103]. - The total sales of Hengan's three core business segments (tissue paper, sanitary napkins, and disposable diapers) recorded a year-on-year decline of approximately 2.2%, which was better than the overall market decline[199]. Market and Strategic Focus - The company continues to focus on consumer and market needs to enhance brand image and corporate culture[3]. - Hengan International aims to become a global top-tier supplier of daily products through innovation and effective management[3]. - Hengan's market share maintained a leading position in the industry despite fierce competition and aggressive price reductions from both domestic and foreign brands[199]. - The company expanded its market share through effective price stabilization strategies and product line upgrades, tapping into the demand for high-quality personal care products[199]. Financial Management and Risks - The Group's financial risk management policies have not changed since the last year end, and it continues to face various financial risks including market risk, credit risk, and liquidity risk[63][64]. - The Group assessed the adoption of new and amended accounting standards and concluded that they did not have a significant impact on the interim results and financial position[51][54]. - The Group's significant judgements and key sources of estimation uncertainty remain consistent with those applied in the consolidated financial statements for the year ended December 31, 2023[62]. Shareholder Information - Basic earnings per share for the six months ended June 30, 2024, was RMB 1.234, up from RMB 1.055 in 2023, reflecting a growth of 16.9%[117]. - The interim dividend proposed is RMB 0.70 per share, totaling RMB 813,485,000, consistent with the interim dividend of RMB 0.70 per share in 2023[122]. - The total share capital remained unchanged at 1,162,120,917 shares, with a value of RMB 123,345,000 as of June 30, 2024[160].

Investment Rating - The report maintains a **Buy** rating for the company with a target price of **HKD 29.40**, representing a **23.0%** upside from the current price [3][4] Core Views - The company maintains its **leading position** in the industry despite intense competition in the personal care market [2] - Revenue decreased by **3.0%** to **RMB 11.84 billion** in H1 2024, but key upgraded and premium products grew by over **10%**, and e-commerce channels grew by **6.5%**, now accounting for **32%** of total revenue [2] - Gross margin improved by **2.3 percentage points** to **33.73%**, driven by lower raw material costs and growth in premium products [2] - Operating profit and net profit attributable to shareholders increased by **11.4%** and **15.0%** to **RMB 1.89 billion** and **RMB 1.41 billion**, respectively [2] - The company has a strong balance sheet with **RMB 5.41 billion** in net cash [2] Business Performance - Tissue business revenue decreased by **3.1%** to **RMB 6.95 billion**, with volume growing by double digits but average selling price (ASP) declining by **12%** [2] - Tissue gross margin improved by **1.9 percentage points** to **19.6%** [2] - Sanitary napkin business revenue decreased by **2.2%** to **RMB 3.15 billion**, with volume flat and ASP declining by **2%** [2] - Sanitary napkin gross margin improved by **0.9 percentage points** to **62.7%** [2] - Diaper business revenue grew by **7.0%** to **RMB 710 million**, with gross margin improving from **36.0%** to **45.3%**, driven by strong growth in the premium product "Q•MO" [2] Financial Projections - Revenue is expected to decline by **1.6%** in 2024 to **RMB 23.38 billion**, but grow by **2.3%** and **2.1%** in 2025 and 2026, respectively [5] - Net profit is forecasted to decline by **3.6%** in 2024 to **RMB 2.70 billion**, but grow by **5.9%** and **4.4%** in 2025 and 2026, respectively [5] - Basic EPS is projected to be **RMB 2.33** in 2024, **RMB 2.46** in 2025, and **RMB 2.57** in 2026 [5] - The company's P/E ratio is expected to be **9.5x** in 2024, **9.0x** in 2025, and **8.6x** in 2026 [5] Financial Health - The company has a strong balance sheet with a **net cash position** of **RMB 5.41 billion** [2] - Net debt ratio is expected to improve from **-0.07** in 2022 to **-0.48** in 2026, indicating a strong cash position [6] - ROE is projected to increase from **34.1%** in 2022 to **36.0%** in 2026 [6] Dividend Policy - The company has consistently paid a dividend of **RMB 1.40** per share, with a dividend yield of **6.3%** [1][3] - The interim dividend for H1 2024 is **RMB 0.70** per share [2]

Investment Rating - The report maintains a "Buy" rating for Hengan International (1044) with a target price of 31.08 RMB [5] Core Views - Hengan International's 2024H1 performance met expectations, with revenue of 11.836 billion RMB (-3.0% YoY) and net profit of 1.409 billion RMB (+14.9% YoY) [5] - The company's gross margin improved to 33.3% (+2.3pct YoY) due to lower raw material costs and reduced exchange losses [5] - Product structure continued to improve, with high-end product sales growing over 10% in 2024H1 [5] - E-commerce channels performed well, contributing 36.4% to tissue, 25.6% to sanitary napkins, and 53.5% to diaper sales [5] Business Segment Analysis Tissue - Revenue of 6.951 billion RMB (-3.1% YoY) in 2024H1 [5] - Wet wipes revenue grew 20.4% to 592 million RMB, accounting for 8.5% of tissue sales (+1.6pct YoY) [5] - Gross margin improved to 19.6% (+1.9pct YoY) driven by product upgrades [5] Sanitary Napkins - Revenue of 3.147 billion RMB (-2.2% YoY) in 2024H1 [5] - High-end products helped offset industry competition pressure [5] - Gross margin reached 62.7% (+0.9pct YoY) [5] Diapers - Revenue of 711 million RMB (+7.0% YoY) in 2024H1 [5] - New retail and maternal-infant channels contributed 53.3% and 20.0% respectively [5] - Gross margin improved significantly to 45.3% (+9.3pct YoY) due to strong growth of high-end Q•MO diapers [5] Cost and Expense Management - Sales and administrative expenses decreased to 2.472 billion RMB (-3.6% YoY), accounting for 20.9% of revenue (-0.1pct YoY) [5] - Exchange losses reduced by 80.3% [5] Future Outlook - The company is expected to maintain profit improvement through enhanced cost control and product upgrades [5] - Continued focus on high-end product development and new retail channels like Douyin [5] - Maintained net profit forecasts for 2024-2026 at 2.923/3.012/3.203 billion RMB [5]