Financial Performance - For the fiscal year ending December 31, 2024, the company's revenue decreased by 10.7% to RMB 2,451,033,000 compared to RMB 2,743,628,000 in 2023[2] - Gross profit for the same period was RMB 1,391,893,000, down 3.2% from RMB 1,438,161,000 in the previous year[2] - The company's profit before tax fell by 30.4% to RMB 149,067,000 from RMB 214,149,000 year-on-year[2] - The company's net profit for 2024 was RMB 98,204 thousand, down 15.0% from RMB 115,576 thousand in 2023[25] - Total revenue for 2024 was RMB 2,451,033 thousand, a decrease of 10.7% compared to RMB 2,743,628 thousand in 2023[25] - The group reported a net profit of RMB 98.2 million for the year, down from RMB 115.6 million in 2023[68] - The total tax expense for the year was RMB 50,863,000, compared to RMB 98,573,000 in 2023, indicating a significant decrease of about 48%[89] - Basic earnings per share for 2024 were RMB 0.04, down from RMB 0.05 in 2023, representing a decline of 20%[93] Sales and Revenue Breakdown - Revenue contribution from duck and duck by-products was RMB 1,955,798,000, accounting for 79.8% of total revenue, compared to 77.3% in 2023[3] - Revenue from self-operated stores was RMB 1,390,935,000, representing 56.7% of total revenue, while franchise revenue was RMB 611,556,000, accounting for 25.0%[5] - Total sales volume dropped to 26,159 tons, down from 31,453 tons, indicating a decline of 16.8%[3] - The revenue from modified atmosphere packaging products was RMB 2,062,856 thousand in 2024, down from RMB 2,388,291 thousand in 2023, representing a decline of 13.5%[81] - The revenue from vacuum packaging products was RMB 257,740 thousand in 2024, slightly down from RMB 261,636 thousand in 2023, a decrease of 1.5%[81] Store Operations and Strategy - The total number of retail stores decreased to 3,031 from 3,816, representing a reduction of approximately 20.5%[3] - The company operates 1,591 self-operated stores and 1,440 franchised stores, covering 303 cities across 28 provinces, regions, and municipalities in China[9] - The company has shifted its strategy from pursuing scale expansion to focusing on quality improvement, aiming to enhance the profitability of individual stores[17] - The company has optimized its store structure by closing underperforming locations while enhancing operational efficiency and profitability[17] Cost Management and Efficiency - Sales costs decreased by 18.9% to RMB 1,059,140 thousand, improving the overall cost structure[25] - Administrative expenses were reduced by 18.0% to RMB 259,764 thousand, reflecting improved operational efficiency[25] - The company aims to strengthen management effectiveness and optimize operating costs to enhance profitability in a challenging market environment[23] - The company integrated resources to improve vehicle loading rates and on-time delivery rates, optimizing logistics costs[21] Market and Consumer Engagement - In 2024, the domestic consumption market continues to recover steadily, injecting momentum into economic growth[15] - The company has redefined its brand positioning, aiming to become the national flavor brand of China, with a focus on engaging younger consumers[19] - Active membership exceeded 550,000 as of December 31, 2024, reflecting enhanced member engagement through targeted marketing activities[19] - The company is leveraging big data and digital tools to refine its operational strategies and improve member consumption experiences[19] Financial Position and Assets - As of December 31, 2024, the group's net assets amounted to RMB 3,626.5 million, a decrease from RMB 3,935.4 million as of December 31, 2023[41] - The group's cash and bank deposits reached approximately RMB 1,254.2 million as of December 31, 2024, compared to RMB 1,074.5 million as of December 31, 2023[42] - Total liabilities increased from RMB 684,184 thousand in 2023 to RMB 765,753 thousand in 2024, an increase of approximately 11.9%[70] - The company reported a decrease in inventory from RMB 315,320 thousand in 2023 to RMB 226,853 thousand in 2024, a decline of approximately 28.0%[70] Shareholder Returns and Dividends - The company plans to distribute a final dividend of RMB 0.05 per share, totaling approximately RMB 102,368,000, which is about 104.2% of the net profit for the year[8] - The board proposed a final dividend of HKD 0.05 per share, amounting to approximately RMB 102,368,000, which is 104.2% of the group's net profit for the year ending December 31, 2024[118] Governance and Compliance - The company has adhered to the corporate governance code, except for a deviation regarding the roles of the Chairman and CEO[121] - The Chairman and CEO roles are currently held by the same individual, which deviates from the corporate governance code, but the board believes this structure will enhance strategic implementation[122] - The audit committee has reviewed the annual performance for the year ending December 31, 2024, confirming that the financial statements align with the audited results[125]

Core Insights - Zhou Hei Ya International Holdings Limited has entered a strategic partnership with Thailand's IMCOCO Group to launch a new coconut water brand named "Yaya Coconut" [1][5] - The collaboration aims to create a new consumption scenario by combining Zhou Hei Ya's signature snacks with beverages, enhancing the overall consumer experience [1][5] Company Strategy - Zhou Hei Ya is focusing on quality upgrades and customer experience by venturing into the beverage segment, specifically targeting the coconut water category [1][5] - The company aims to leverage the growing health-conscious trend among young consumers who prefer natural, low-calorie, and electrolyte-rich beverages [1][3] Product Development - The first major product under the "Yaya Coconut" brand will be the Freshly Extracted Powdered Coconut Water, made from high-quality Thai coconuts using low-temperature extraction technology [3][4] - The product is marketed as 100% natural with no additives, catering to consumer demands for both taste and health [3] Market Positioning - The partnership with IMCOCO Group provides Zhou Hei Ya with a stable supply of premium raw materials and ongoing research and development support for the "Yaya Coconut" brand [2][5] - IMCOCO Group has established a significant presence in Thailand's coconut water market, with a self-owned coconut agricultural park and a beverage factory, enhancing the supply chain capabilities for the new product [2][5] Future Outlook - The "Yaya Coconut" Freshly Extracted Powdered Coconut Water is set to launch in over 3,000 Zhou Hei Ya retail stores and e-commerce platforms in early 2025 [4] - The collaboration is expected to invigorate Zhou Hei Ya's business and set a new benchmark for cross-industry integration within the snack and beverage sectors [5]

Retail Store Operations - As of June 30, 2024, the Group had a total of 3,456 retail stores, comprising 1,735 self-operated and 1,721 franchised stores, covering 323 cities across 28 provinces in China[8]. - The number of retail stores in Central China was 1,566, accounting for 45.3% of the total, while Southern China had 572 stores, representing 16.6%[9]. - The total number of retail stores decreased from 3,706 in 2023 to 3,456 in 2024, reflecting a reduction of approximately 6.7%[9]. - The number of retail stores in Northern China decreased from 542 in 2023 to 443 in 2024, a decline of 18.3%[9]. - The company aims to increase its market share in Western China, where the number of stores was 351, accounting for 10.1% of the total[9]. - The Group launched 127 "two-in-one retail stores" in Wuhan and surrounding areas to meet diversified consumer demands as of June 30, 2024[20]. Financial Performance - Total revenue for the first half of 2024 was RMB 1,024,333,000, a decrease of 11.6% compared to RMB 1,159,401,000 in the same period of 2023[13]. - Revenue for the six months ended June 30, 2024, was RMB 1,259,511,000, a decrease of 10.9% compared to RMB 1,414,764,000 for the same period in 2023[116]. - The company's net profit for the period was RMB 32,913, reflecting a significant decline of 67.7% from RMB 101,742 in the previous year[31]. - The Group's net profit decreased by 67.6% from RMB 101.7 million for the six months ended June 30, 2023, to RMB 32.9 million for the six months ended June 30, 2024, with a net profit margin decreasing from 7.2% to 2.6%[33]. - The Group's total comprehensive income for the six months ended June 30, 2024, was RMB 37.7 million, a decrease of 68.1% from RMB 118.2 million for the same period in 2023[35][39]. Cost Management - Cost of sales decreased by approximately 16.4% from RMB672.0 million for the six months ended June 30, 2023, to RMB561.9 million for the six months ended June 30, 2024, attributed to a drop in production and sales of products and a decrease in raw material prices[32]. - Selling and distribution expenses decreased by 55.7% to RMB 504,977 compared to RMB 474,075 in the previous year[31]. - Administrative expenses decreased by approximately 25.1% from RMB160.1 million for the six months ended June 30, 2023, to RMB119.9 million for the six months ended June 30, 2024, due to the lapse of certain restricted share units[33]. Strategic Initiatives - The Group's strategic focus includes expanding its presence in underrepresented regions while optimizing the performance of existing stores[8]. - The management plans to enhance product offerings and invest in new technology to improve operational efficiency and customer experience[8]. - Future outlook includes exploring potential mergers and acquisitions to accelerate growth and market penetration[8]. - The Group is committed to maintaining a strong financial position while pursuing sustainable growth strategies in the competitive market[8]. Employee and Labor Costs - As of June 30, 2024, the Group had a total of 4,297 employees, with approximately 60.7% in retail operations and sales[72]. - Total labor costs for the six months ended June 30, 2024, amounted to RMB271.6 million, representing approximately 21.6% of total revenue[74]. Shareholder Information - The Group repurchased a total of 81,580,000 shares at an aggregate consideration of HK$ 147,687,203 during the six months ended June 30, 2024[36][40]. - The remaining balance of net proceeds from the IPO as of June 30, 2024, was RMB 189.8 million, down from RMB 199.8 million as of December 31, 2023[44][48]. - The Group's reserves available for distribution to shareholders amounted to approximately RMB1,140.6 million[76]. Governance and Compliance - The Company has complied with the applicable code provisions in part 2 of the Corporate Governance Code, except for a deviation regarding the separation of roles between the Chairman and CEO[101]. - The Board believes that combining the roles of Chairman and CEO will enhance strategic implementation and operational efficiency during a critical period of change[103]. - The Company will continue to improve its corporate governance practices in line with its business growth[103].

Investment Rating - The investment rating for the company is "Outperform the Market" [4]. Core Views - The company aims to enhance store quality as its core objective, focusing on the new consumption environment and piloting "dual-purpose stores" [4][5]. - In the first half of 2024, the company reported a revenue of 1.26 billion HKD, a year-over-year decrease of 10.97%, and a net profit attributable to the parent company of 33 million HKD, down 67.65% year-over-year [1]. Summary by Sections Revenue Breakdown - In 2024H1, self-operated stores generated revenue of 697 million HKD (YOY -7.21%), franchised stores generated 327 million HKD (YOY -19.81%), online channels generated 177 million HKD (YOY -17.06%), and other revenues amounted to 57.35 million HKD (YOY +40.02%) [4]. - The total number of stores reached 3,456, a decrease of 250 stores year-over-year, with self-operated stores at 1,735 (up 193) and franchised stores at 1,721 (down 443) [4]. Store Types and Locations - The company has 268 self-operated stores in transportation hubs (up 111) and 80 franchised stores (up 13) [5]. - In commercial areas, there are 928 self-operated stores (up 81) and 1,083 franchised stores (down 302) [5]. - The company is piloting "dual-purpose stores" in Wuhan and surrounding areas, with 127 such stores established by the end of June 2024 [5]. Financial Forecasts - Revenue projections for 2023-2025 are 2.56 billion HKD, 2.74 billion HKD, and 2.94 billion HKD, respectively, with net profits of 100 million HKD, 166 million HKD, and 222 million HKD [6][7]. - The expected EPS for the same period is 0.04 HKD, 0.07 HKD, and 0.10 HKD [6][7]. Valuation - The company is valued at a PE ratio of 16-20 times for 2025E, leading to a fair value range of 1.12-1.40 HKD per share, which translates to 1.24-1.56 HKD per share when converted at an exchange rate of 0.90 [7].

Investment Rating - Buy (Maintained) [1] Core Views - The company has shifted its focus from expanding store numbers to improving store quality, with a reduction in total stores from 3,816 in 2023 to 3,456 in 2024H1 [2] - Directly operated stores increased by 15 to 1,735, surpassing the number of franchised stores, which decreased by 375 to 1,721 [2] - Revenue from directly operated/franchised/online/other channels was RMB 697/327/178/57 million, representing year-on-year changes of -7.2%/-19.8%/-17.1%/+40.0% respectively [2] - The company's gross profit margin improved to 55.4% in 2024H1, up 2.9 percentage points year-on-year, driven by lower raw material costs and supply chain optimization [4] - The company's net profit margin declined to 2.6% in 2024H1, down 4.6 percentage points year-on-year, due to increased sales expenses and declining revenue [4] Store Performance and Strategies - Average store revenue declined in 2024H1, with average customer spending per transaction dropping 10% year-on-year to RMB 55.57 [2] - The company has implemented multiple measures to boost store performance, including piloting new store formats, enhancing store management, and diversifying product offerings [2] - A total of 127 "dual-format" stores combining fresh and bulk products have been opened in Wuhan and surrounding areas as of 2024H1 [2] Financial Performance - The company reported revenue of RMB 1.26 billion in 2024H1, a year-on-year decrease of 10.97% [3] - Net profit attributable to shareholders was RMB 33 million in 2024H1, a year-on-year decrease of 67.65% [3] - Sales/management expense ratios were 40.1%/9.5% in 2024H1, representing year-on-year changes of +6.6 percentage points/-1.8 percentage points [4] Forecast and Valuation - Revenue is expected to be RMB 2.444/2.575/2.712 billion in 2024/2025/2026, with year-on-year growth rates of -11%/+5%/+5% [5] - Net profit attributable to shareholders is forecasted to be RMB 100/193/214 million in 2024/2025/2026, with year-on-year growth rates of -14%/+94%/+11% [5] - EPS is projected to be RMB 0.04/0.08/0.09 in 2024/2025/2026, with corresponding P/E ratios of 31/16/14X [5] Market Data - Current stock price: HKD 1.44 as of 2024/08/28 [2] - Market capitalization: HKD 3,351.63 million [2] - Average daily trading volume: HKD 6.91 million [2]

| --- | --- | |-----------------------------------------------------------------------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------| | 证券研究报告 | [Table_Title] 短期承压，积极调整 | | 公司研究 | [Table_ReportDate] 2024 年 08 月 27 日 | | [Table_ReportType] 公司点评报告 | [Table_Summary] 事件：公司发布 2024 年中期报告， ...

Financial Performance - Revenue for the six months ended June 30, 2024, was RMB 1,259,511 thousand, a decrease of 11.0% compared to RMB 1,414,764 thousand in the same period of 2023[2] - Gross profit for the same period was RMB 697,657 thousand, down 6.1% from RMB 742,813 thousand year-on-year[2] - Profit before tax decreased significantly by 61.5% to RMB 56,769 thousand from RMB 147,396 thousand in the previous year[2] - Net profit attributable to shareholders for the period was RMB 32,913 thousand, a decline of 67.7% compared to RMB 101,742 thousand in 2023[2] - Total comprehensive income for the six months ending June 30, 2024, was RMB 37.7 million, a decrease of 68.1% compared to RMB 118.2 million for the same period in 2023[33] - The total tax expense for the six months ended June 30, 2024, was RMB 23,856,000, compared to RMB 45,654,000 in the same period of 2023, representing a decrease of approximately 47.8%[86] - The basic and diluted earnings per share for the six months ended June 30, 2024, was RMB 0.01, down from RMB 0.04 in 2023[61] Store Operations - Total number of stores as of June 30, 2024, was 3,456, down from 3,706 in the previous year[3] - Revenue from self-operated stores was RMB 696,877 thousand, representing 55.3% of total revenue, down from 53.1% in the previous year[5] - The company is focusing on improving store quality rather than merely increasing the number of stores, assessing long-term growth potential[14] - As of June 30, 2024, the company successfully opened 127 "dual-format stores" in Wuhan and surrounding areas to meet diverse consumer demands[14] Sales and Marketing - Total sales volume for the period was 14,618 tons, a decrease from 15,791 tons in the same period last year[3] - Average spending per purchase order was RMB 55.57, down from RMB 62.01 year-on-year[3] - The company has strengthened its member system and private domain operations, focusing on personalized marketing activities to attract younger consumers[16] - The company launched a store incentive program to enhance employee motivation and improve service quality, resulting in innovative sales strategies[15] Cost Management - Cost of sales reduced by 16.4% to RMB 561.9 million, primarily due to a decrease in product sales volume and lower raw material prices[22] - Gross profit declined by 6.1% to RMB 697.7 million, but the gross profit margin increased from 52.5% to 55.4%[23] - Financial expenses decreased by 58.1% to RMB 6.0 million, mainly due to the redemption of all convertible bonds in the second half of 2023[25] - Selling and distribution expenses increased by 6.5% to RMB 505.0 million, driven by the expansion of offline self-operated stores[26] Assets and Liabilities - As of June 30, 2024, the group's net asset value was RMB 3,698.9 million, down from RMB 3,935.4 million as of December 31, 2023[36] - Current assets decreased to RMB 1,946,543 thousand from RMB 2,130,825 thousand, representing a decline of about 8.6%[65] - Total liabilities increased to RMB 805,061 thousand from RMB 684,184 thousand, marking an increase of approximately 17.6%[65] - The group's debt-to-asset ratio increased from 19.6% as of December 31, 2023, to 21.2% as of June 30, 2024, primarily due to the bank borrowings of RMB 150.0 million[44] Cash Flow - The net cash generated from operating activities for the six months ended June 30, 2024, is approximately RMB 193.8 million, compared to RMB 156.6 million for the same period in 2023[46] - The net cash generated from investing activities for the six months ended June 30, 2024, is approximately RMB 374.4 million, slightly down from RMB 376.8 million for the same period in 2023[47] - The net cash used in financing activities for the six months ended June 30, 2024, is approximately RMB 249.2 million, compared to RMB 241.5 million for the same period in 2023[47] Strategic Initiatives - The company is undergoing organizational iterations to enhance brand competitiveness and achieve stable, high-quality growth in the second half of 2024[18] - The company is optimizing its supply chain to support the new "dual-format" business model, ensuring efficient resource allocation[17] - The company is committed to enhancing product quality, introducing various classic flavored products to differentiate itself in a competitive market[16] - The group plans to utilize internal resources and IPO proceeds for expansion and business operations[34] Shareholder Information - The group has not declared any interim dividend for the six months ended June 30, 2024, compared to an interim dividend of HKD 0.12 per share in the same period of 2023[88] - The group repurchased 81,580,000 shares at a total cost of HKD 147,687,203.00 on the Hong Kong Stock Exchange[35] - The group’s reserves available for distribution to shareholders amounted to approximately RMB 1,140.6 million as of June 30, 2024[59] Market Position - The company continues to focus on the production, marketing, and retail of duck leisure products in mainland China, with no specific new product launches or technological advancements mentioned in the provided data[68] - The group’s primary business is the production, marketing, and retail of duck leisure products, with all revenue generated from mainland China[72][73]

Summary of Conference Call Company and Industry - The discussion revolves around the company's strategic adjustments in response to current market conditions and consumer behavior trends. Core Points and Arguments - The company has conducted internal reflections and reviews to adapt to the changing market environment and the more cautious and rational consumption trends of consumers this year [1]. - A significant restructuring of key strategies was initiated at the beginning of the year to align with these market changes [1]. Other Important but Possibly Overlooked Content - The emphasis on understanding consumer behavior indicates a proactive approach to market dynamics, suggesting potential future investments in consumer research and analytics [1].

Summary of Conference Call Transcript Company/Industry Involved - The discussion involves a listed company in the transportation service sector, focusing on community and commercial circle electric models. Core Points and Arguments - There is a noticeable increase in voluntary demand feedback from the company's leadership, indicating a positive market sentiment in the second quarter compared to the first quarter [1] - The company is analyzing the year-over-year performance of different electric models, particularly in the transportation service sector, to assess single-key revenue trends [1] Other Important but Possibly Overlooked Content - The call highlights the importance of understanding market demand and competition dynamics as they evolve from the first to the second quarter [1]

Summary of the Conference Call Company and Industry - The conference call primarily discusses **Zhou Hei Ya**, a company in the **snack food industry**, specifically focusing on **marinated food products**. Key Points and Arguments 1. **Market Demand and Sales Performance** - Since October 2023, consumer income expectations and consumption information have not shown significant improvement, remaining relatively low compared to the previous year. Overall store sales are still lagging behind last year's figures, reflecting a similar trend across the industry [3][4][22]. 2. **Sales Channels and Performance Gaps** - Different sales channels, including transportation hubs, commercial areas, and communities, are experiencing sales gaps compared to last year. The first quarter of 2023 had a high base, contributing to the current performance challenges [4][12]. 3. **Strategic Focus on New Product Offerings** - The company is focusing on **electronic sales** as a core strategy, introducing a new dual-product model that combines hot and bulk products to enhance store efficiency [5][11]. 4. **Store Performance Variability** - Initial tests of the new product offerings in about 70-80 stores show mixed results, with some stores performing well while others are still under observation. More stable data will be available after three months of operation [7][28]. 5. **Store Renovation and Opening Strategy** - The majority of the new dual-product stores are renovations rather than new openings, as renovations are quicker and less costly. The renovation cost is estimated to be between 10,000 to 20,000 yuan per store [14][18]. 6. **Consumer Behavior and Pricing Sensitivity** - In a downtrending consumption environment, consumers are becoming more rational and price-sensitive. The introduction of lower-priced products aims to meet this demand [12][13]. 7. **Competition and Market Dynamics** - The marinated food industry faces competition from emerging snack stores and small vendors, which may divert consumer spending. However, the company believes it maintains a competitive edge in terms of food safety and brand reputation [19][22][24]. 8. **Future Growth and Expansion Plans** - The company plans to open around 300 new dual-product stores, primarily in Wuhan and surrounding areas, while also considering expansion into other regions based on the success of current models [45][46]. 9. **Product Safety and Supply Chain Management** - The company emphasizes strict control over food safety, especially with the introduction of bulk and hot products. Daily supply chain management is in place to ensure product quality [54][55]. 10. **Financial Metrics and Profitability** - Transportation hub stores contribute approximately 20% of total revenue, with a slightly higher profit margin compared to other channels. The average payback period for new stores is estimated to be within 18 months [37][42]. Other Important but Possibly Overlooked Content - The company is actively exploring partnerships with new retail channels, such as Costco, to enhance market reach and adapt to changing consumer preferences [23][24]. - The dual-product model is designed to cater to different consumer needs, such as convenience for on-the-go purchases versus immediate consumption [30][31]. - The company is continuously refining its product offerings based on consumer feedback and market trends, indicating a responsive approach to changing market dynamics [50][52].