Investment Rating - The investment rating for the company is maintained at "Buy-A" with a target price of HKD 19.49, based on the stock price of HKD 14.50 as of March 27, 2024 [4]. Core Insights - The company reported a revenue of HKD 6.147 billion in 2023, which remained flat year-on-year, while net profit increased by 11.2% to HKD 907 million, and attributable net profit rose by 14.9% to HKD 853 million [1][8]. - The company declared a dividend of HKD 767 million at the end of 2023, resulting in a dividend payout ratio of approximately 90% and a dividend yield of about 6.0% based on the stock price [1]. - The company is focusing on channel management and expanding into B-end and overseas markets, with new product development to drive revenue growth [9]. Revenue Breakdown - In 2023, revenue from related parties and third parties was HKD 20.1 billion and HKD 41.4 billion, respectively, showing a year-on-year increase of 35.0% for related parties and a decline of 11.2% for third parties [2]. - The hot pot seasoning category achieved a total revenue of HKD 40.9 billion, with a year-on-year increase of 11.7%, while the convenience food segment saw a decline of 25.8% [2]. - The company experienced a significant recovery in related party demand due to the improvement in offline dining, while third-party hot pot seasoning faced slight declines due to market competition [2]. Profitability and Cost Management - The company achieved a gross margin of 31.6% in 2023, an increase of 1.4 percentage points year-on-year, primarily due to lower raw material costs [3]. - The selling expense ratio was 9.6%, down 0.9 percentage points year-on-year, while the management expense ratio increased to 4.5% [3]. - The attributable net profit margin improved to 13.9%, reflecting a year-on-year increase of 1.8 percentage points [3]. Future Outlook - The company expects to continue expanding its B-end market and enhance its product matrix to capture more market share [9]. - Revenue projections for 2024-2026 are estimated at HKD 69.0 billion, HKD 76.6 billion, and HKD 83.7 billion, with attributable net profits of HKD 9.7 billion, HKD 10.9 billion, and HKD 11.8 billion, respectively [9].

Investment Rating - The report maintains a "Buy" rating for Yihai International (1579 HK) [3] Core Views - Yihai International's 2023 revenue was flat YoY at RMB 6 15 billion while net profit attributable to shareholders increased 14 9% YoY to RMB 853 million [3] - The company significantly increased its dividend payout ratio from 25% in 2022 to 90% in 2023 [5] - Online channels and overseas markets are expected to drive growth in 2024 with Southeast Asia as a key focus [4][6] Business Performance Revenue Breakdown - Hotpot seasoning revenue increased 11 7% YoY to RMB 4 092 billion accounting for 66 6% of total revenue [5] - Chinese compound seasoning revenue grew 9 2% YoY to RMB 621 million representing 10 1% of total revenue [5] - Instant food revenue declined 25 8% YoY to RMB 1 387 billion contributing 22 6% of total revenue [5] Profitability - Gross margin improved by 1 4 percentage points to 31 6% in 2023 driven by lower raw material costs [5] - Net profit margin attributable to shareholders increased by 1 8 percentage points to 13 9% [5] Growth Drivers Online Channel - The company appointed a new online channel head in November 2023 and plans to launch online-exclusive products [4] - Online channel is expected to expand rapidly in 2024 with both sales and brand promotion functions [4] Overseas Market - Southeast Asia is a key focus with Thailand factory starting production in 2023 [4] - The company obtained halal certification and plans to develop Muslim markets such as Indonesia [4] Small B-end Business - The company established a small B-end sales team in 2023 and expects this segment to double in 2024 [4] Financial Forecasts - Revenue is expected to grow 13 9% YoY to RMB 7 001 billion in 2024 [7] - Net profit attributable to shareholders is forecasted to increase 13 4% YoY to RMB 967 million in 2024 [7] - EPS is projected to grow from RMB 0 82 in 2023 to RMB 0 93 in 2024 [7] Valuation - The current stock price implies a 13x P E ratio for 2024 [4]

Core Viewpoint - UBS maintains a "Neutral" rating on Yihai International (01579) and expects a positive market reaction to the group's increased dividend, raising profit forecasts for 2024 and 2025 by 5% and 6% respectively [1] Group 1: Financial Performance - Yihai International's sales remained flat year-on-year, while net profit increased by 15% to 853 million RMB, indicating a 2% and 3% year-on-year growth in sales and net profit respectively in the second half of last year, surpassing UBS's expectations [1] - The company announced a final dividend of 0.74 RMB per share, resulting in a payout ratio of 90%, significantly higher than the historical payout ratio of 20% to 30% over the past few years [1] Group 2: Future Projections - The compound annual growth rate (CAGR) for sales and net profit from 2023 to 2025 is projected to be 8% and 9% respectively [1] - The target price for Yihai International has been raised from 13 HKD to 14 HKD [1]

智通财经APP获悉，颐海国际(01579)绩后涨超9%，截至发稿，涨6.17%，报14.12港元，成交额3501.08 万港元。 消息面上，颐海国际发布年度业绩，该集团期内取得收益61.48亿元人民币，同比增加0.01%；股东应占 溢利8.53亿元，同比增加14.92%；每股基本盈利87.5分；拟派发末期股息每股0.74元。 公告称，火锅调味料产品所得收入由2022年的36.65亿元增加11.7%至2023年的40.92亿元，占2023年度 收入的66.5%。其中，向关联方销售火锅调味料产品收入同比增加35.6%。东吴证券此前指出，海底捞 开放加盟，将以稳健扩张为主，对颐海国际有一定边际贡献。 ...

Investment Rating - The investment rating for the company is "Buy" (maintained) [1] Core Views - The company reported a significant increase in dividend payout ratio, reaching nearly 90% [1] - The revenue for H2 2023 was HKD 35.31 billion, a 2.1% increase, with net profit at HKD 5.3 billion, up 1.9% [1] - The overall revenue for 2023 was HKD 61.48 billion, showing a marginal increase of 0.01%, while net profit rose by 11.2% to HKD 9.07 billion [1] - The company is expected to achieve total revenue of HKD 69 billion, HKD 76 billion, and HKD 84 billion for 2024-2026, representing year-on-year growth of 12%, 11%, and 10% respectively [1][3] Financial Performance Summary - The company’s gross profit margin and net profit margin improved by 1.4% and 1.5% year-on-year, respectively, due to a higher proportion of high-margin hot pot condiments and a decrease in costs [1] - The company’s earnings per share (EPS) for 2024E, 2025E, and 2026E are projected to be HKD 0.94, HKD 1.06, and HKD 1.17, respectively [3][4] - The return on equity (ROE) is expected to be 17.50% in 2024E, gradually decreasing to 16.76% by 2026E [3][4] Business Segment Performance - The recovery of the hot pot business has led to accelerated growth in related party transactions, with revenue from third-party and related party sources reaching HKD 41 billion and HKD 20 billion, respectively, in 2023 [1] - The convenience food segment showed a year-on-year decline of 16.3%, but the rate of decline has narrowed, indicating a shift towards cost-effective products that align with consumer trends [1] Future Outlook - The company is expanding its B-end and overseas markets, with new production capacities coming online in 2024, which is expected to enhance supply chain synergy [1] - The company is well-positioned for growth with a favorable outlook for the hot pot and convenience food segments, supported by the ongoing recovery in the restaurant industry [1]

Revenue and Profit Performance - Revenue for 2023 remained stable at RMB 6,147.6 million, compared to RMB 6,147.0 million in 2022[2] - Gross profit increased by 4.7% to RMB 1,941.3 million in 2023 from RMB 1,853.9 million in 2022[2] - Net profit rose by 11.2% to RMB 907.0 million in 2023 from RMB 816.0 million in 2022[2] - Profit attributable to owners of the company increased by 14.9% to RMB 852.7 million in 2023 from RMB 742.0 million in 2022[2] - Operating profit grew to RMB 1,194.8 million in 2023 from RMB 1,117.7 million in 2022[5] - Total comprehensive income for the year was RMB 907.3 million in 2023, up from RMB 812.8 million in 2022[7] - The company's revenue for 2023 was RMB 6,147.6 million, maintaining the same level as 2022, with a net profit of RMB 907.0 million, a year-on-year increase of 11.2%[40] - Net profit increased by 11.2% from RMB 816.0 million in 2022 to RMB 907.0 million in 2023, with net profit margin rising from 13.3% to 14.8%[61] Product Revenue Breakdown - Revenue from hot pot seasonings increased to RMB 4,091,666 thousand in 2023, up from RMB 3,664,696 thousand in 2022[16] - Revenue from Chinese compound seasonings grew to RMB 621,397 thousand in 2023, compared to RMB 568,863 thousand in 2022[16] - Revenue from convenience food products decreased to RMB 1,387,122 thousand in 2023, down from RMB 1,870,069 thousand in 2022[16] - Hot pot seasoning revenue increased by 11.7% to RMB 4,091.7 million in 2023, accounting for 66.5% of total revenue[47] - Revenue from sales to related parties for hot pot seasoning increased by 35.6% year-over-year, driven by increased offline consumption demand[47] - Revenue from third-party sales of hot pot seasoning decreased by 3.2% due to competition from new small-block butter hot pot base products[47] - Chinese compound seasoning revenue grew by 9.2% to RMB 621.4 million, with third-party sales increasing by 6.1% and related party sales surging by 176.6%[48] - Convenient food revenue declined by 25.8% to RMB 1,387.1 million, with third-party sales dropping by 27.2% due to diversified consumer demand and slow new product launches[49] Sales Channels and Related Parties - Sales to related parties accounted for 32.7% of total revenue in 2023, up from 24.2% in 2022[16] - Sales to related parties (including Haidilao Group, Super Hi International Group, and Shuhai Supply Chain Group) reached RMB 2,010.8 million in 2023, a 35.0% increase year-on-year[42] - Sales to related parties (e.g., Haidilao Group, Super Hi International, and Shuhai Supply Chain) increased by 35.0% to RMB 2,010.8 million[51] - Revenue from distributors decreased by 11.5% to RMB 3,805.0 million, primarily due to declining demand for self-heating hot pot products[51] - E-commerce channel revenue fell by 8.3% to RMB 304.6 million, mainly due to the decline in convenient food product sales[51] - Revenue from North China region was RMB 2,723.585 million, accounting for 44.3% of total revenue, while South China region contributed RMB 3,047.321 million, representing 49.6% of total revenue[52] Financial Position and Assets - Total assets increased to RMB 6,054.4 million in 2023 from RMB 5,551.3 million in 2022[3] - Total equity attributable to owners of the company rose to RMB 4,817.9 million in 2023 from RMB 4,319.9 million in 2022[3] - Cash and cash equivalents increased to RMB 2,309.4 million in 2023 from RMB 1,880.5 million in 2022[3] - Cash and cash equivalents increased to RMB 2,309.4 million as of December 31, 2023, compared to RMB 1,880.5 million in the previous year[63] - Inventory decreased to RMB 370.5 million as of December 31, 2023, from RMB 387.5 million in 2022, with inventory turnover days decreasing from 33.3 days to 32.9 days[65] - Trade receivables increased to RMB 258.1 million as of December 31, 2023, from RMB 155.6 million in 2022, mainly due to increased revenue from affiliated stores[66] - The company has no bank borrowings and a capital-to-debt ratio of 1.7% as of December 31, 2023, down from 2.5% in 2022[69] Expenses and Costs - Total expenses decreased to RMB 5,071,127 thousand in 2023 from RMB 5,167,513 thousand in 2022, reflecting a reduction in various cost categories[24] - Employee benefits expenses increased to RMB 581,512 thousand in 2023, up from RMB 545,352 thousand in 2022, indicating higher labor costs[24] - Sales cost decreased by 2.0% from RMB 4,293.1 million in 2022 to RMB 4,206.3 million in 2023, primarily due to lower procurement prices of raw materials such as oils, peppercorns, and beef packages[53] - Distribution expenses decreased by 8.8% from RMB 646.6 million in 2022 to RMB 589.4 million in 2023, mainly due to reduced advertising and transportation costs[55] - Administrative expenses increased by 20.9% from RMB 227.8 million in 2022 to RMB 275.5 million in 2023, driven by higher travel and office expenses as well as discretionary bonuses for senior management[56] Earnings and Dividends - Basic and diluted earnings per share were RMB 0.875 in 2023[2] - Basic earnings per share increased to 87.5 RMB cents in 2023, up from 75.7 RMB cents in 2022, reflecting improved profitability[34] - Diluted earnings per share remained consistent with basic EPS at 87.5 RMB cents in 2023, indicating minimal dilution impact from potential shares[36] - Total dividends paid in 2023 amounted to RMB 179,312,000 or RMB 0.1772 per share, compared to RMB 224,563,000 or RMB 0.219563 per share in 2022[37] - The company proposed a final dividend of RMB 0.74 per ordinary share for the year ended December 31, 2023, totaling RMB 767,158,000, to be approved at the annual general meeting on May 23, 2024[38] - The board proposed a final dividend of RMB 0.74 per share for the year ended December 31, 2023, totaling approximately RMB 767,158,000, to be paid on or around June 18, 2024[81] - The final dividend will be converted to HKD at the average benchmark exchange rate published by the People's Bank of China, resulting in a dividend of HKD 0.8154 per share[81] - Shareholders registered by May 30, 2024, will be eligible to receive the final dividend[82] - The company will suspend share transfer registration from May 29 to May 30, 2024, to determine eligibility for the final dividend[82] Strategic Initiatives and Future Plans - The company focused on optimizing supply chain efficiency, improving self-production ratios, and enhancing overseas supply capabilities[39] - The company implemented a multi-brand strategy, emphasizing the integration of brands and products, and enhancing consumer brand awareness through various promotional methods[39] - The company plans to focus on product R&D, overseas expansion, brand promotion, channel construction, and supply chain optimization in 2024[72] - The company will continue to implement a multi-brand strategy, enhancing consumer recognition of brands like "Haidilao" and "Kuaishou Xiaochu" through online and offline marketing[72] - The company aims to optimize overseas supply chains, reduce logistics costs, and improve efficiency, particularly with the establishment of the Southeast Asia supply center[72] - The company will strengthen its e-commerce channel management, focusing on product differentiation and enhancing online shopping experiences[73] Operational Highlights - The company launched 24 new hot pot seasoning products, 37 new Chinese compound seasoning products, and 40 new instant food products in 2023[43] - As of December 31, 2023, the company had 62 hot pot seasoning products, 68 Chinese compound seasoning products, and 72 instant food products available for sale[43] - The company's third-party distributor sales business covered 34 provincial-level administrative regions in China and 49 overseas countries and regions[41] - The company operated 9 flagship stores on e-commerce platforms such as Tmall, JD.com, and Pinduoduo as of December 31, 2023[41] - The Hebei Bazhou Phase II project, with an annual capacity of 28,000 tons of instant food products, commenced operations in Q1 2024[74] - The Anhui Yihai Technology beef tallow production base, with a planned annual capacity of 57,000 tons, is expected to start operations in Q2 2024[74] - The Thailand factory, with an annual capacity of 15,000 tons of hotpot base and compound seasoning products, began operations in Q2 2023 and primarily serves the Southeast Asian market[74] Share Repurchase and Employee Information - The company repurchased and canceled 10,200,000 ordinary shares in 2023, with a total consideration of approximately RMB 175,757 thousand[22] - The company repurchased 10,200,000 shares on the Hong Kong Stock Exchange for a total consideration of approximately HKD 199,740,172 (RMB 175,757,000) during the reporting period[77] - Total number of employees as of December 31, 2023, is 2,816, including 2,097 in production, 562 in marketing, and 157 in administrative and management roles[70] - Total employee costs for the year ending December 31, 2023, amounted to RMB 581.5 million, covering salaries, wages, allowances, and benefits[70] - The company approved and granted 125,000 restricted share units under the Restricted Share Unit Plan on November 23, 2023[80] Accounting and Reporting - The company adopted new and revised accounting standards effective from January 1, 2023, which are not expected to have a significant impact on current or future periods[12] - The annual report for the year ended December 31, 2023, includes all information required by the listing rules and will be published on the company and HKEX websites[83] Government Grants and Financing - Government grants increased to RMB 88,929 thousand in 2023 from RMB 83,704 thousand in 2022, primarily from tax refunds and deferred income amortization[25] - Net financing income rose significantly to RMB 69,296 thousand in 2023, compared to RMB 24,435 thousand in 2022, driven by higher interest income[26] - Income tax expense for 2023 was RMB 357,089 thousand, slightly higher than the RMB 326,161 thousand recorded in 2022[27]

证券研究报告·海外公司点评·食物饮品(HS) 颐海国际（01579.HK） 开局顺畅，多渠道并进 2024 年 03月 06日 买入（维持） 证券分析师 孙瑜 [Table_EPS] 执业证书：S0600523120002 盈利预测与估值 2021A 2022A 2023E 2024E 2025E suny@dwzq.com.cn 营业总收入（百万元） 5,943 6,147 6,231 7,056 7,877 证券分析师 李昱哲 同比 10.9% 3.4% 1.4% 13.2% 11.6% 执业证书：S0600522090007 归母净利润（百万元） 766 742 831 995 1125 liyzh@dwzq.com.cn 同比 -13.4% -3.2% 12.0% 19.7% 13.1% EPS-最新摊薄（元/股） 0.73 0.71 0.79 0.95 1.07 股价走势 P/E（现价&最新摊薄） 16 16 15 12 11 颐海国际 恒生指数 [关Ta键bl词e_：Ta#g比] 同类公司便宜 #产品结构变动带来利润率上升 -2% -8% -14% [ 投Ta 资ble 要_S 点um mary] ...

Financial Performance - Yihai International Holding Ltd. reported a revenue of HK$1.2 billion for the first half of 2023, representing a year-on-year increase of 15%[3]. - The company achieved a net profit of HK$300 million, up 20% compared to the same period last year[3]. - Revenue for the first half of 2023 was RMB 2,616,226, a decrease of 2.7% compared to RMB 2,688,482 in the same period of 2022[15]. - Gross profit increased by 4.4% to RMB 798,589 from RMB 765,107 year-on-year[16]. - Operating profit rose by 28.0% to RMB 498,429 compared to RMB 389,315 in the previous year[16]. - Profit for the period reached RMB 376,960, reflecting a 27.3% increase from RMB 296,017 in the prior year[16]. - Basic earnings per share attributable to equity holders increased by 36.3% to 36.59 RMB cents from 26.84 RMB cents[18]. - The Group's net profit increased by 27.3% from RMB296.0 million for the six months ended 30 June 2022 to RMB377.0 million for the corresponding period in 2023, with a net profit margin rising from 11.0% to 14.4%[59]. - Profit attributable to the owners of the Company for the six months ended June 30, 2023, was RMB 357,825,000, an increase of 35.9% compared to RMB 263,144,000 in 2022[200]. Revenue Breakdown - Revenue from hot pot condiments was RMB 1,654.2 million, accounting for 63.2% of total revenue, an increase from 52.9% in the same period last year[39]. - Revenue from Chinese-style compound condiments grew by 6.6% from RMB342.9 million in H1 2022 to RMB365.3 million in H1 2023, representing 14.0% of total revenue[43]. - Revenue from convenient ready-to-eat food products decreased to RMB 573.0 million, representing 21.9% of total revenue, down from 33.4% in the previous year[39]. - Revenue from sales of hot pot condiment products to related parties rose by 36.9% year-on-year, driven by increased revenue from related party stores as the catering industry recovered[41]. - Revenue from sales to related parties accounted for approximately 33.9% of the Group's total revenue for the six months ended 30 June 2023, compared to 24.5% for the same period in 2022[154]. Market and Growth Strategy - The company provided a positive outlook, projecting a revenue growth of 10-15% for the second half of 2023[3]. - Yihai International is investing HK$200 million in new product development, focusing on plant-based food options[3]. - The company plans to expand its market presence in Southeast Asia, targeting a 30% increase in market share by 2025[3]. - The Group continued to innovate in product research and development, aiming to meet diverse consumer needs and expand into overseas markets[21]. - The Group aims to enhance product acceptance in overseas markets by focusing on local flavors and unique styles[34]. Cost Management and Efficiency - The company reported a gross margin of 35%, an improvement from 32% in the previous year[3]. - Yihai International is implementing new technology in its production processes, aiming to reduce costs by 10% over the next year[3]. - Distribution expenses decreased by 23.8% to RMB 239.8 million, representing 9.2% of total revenue, down from 11.7% in the same period of 2022[56]. - Administrative expenses increased by 11.6% to RMB 140.8 million, with the percentage of revenue rising to 5.4% from 4.7%[58]. - Cost of sales decreased by 5.5% to RMB 1,817.6 million for the six months ended June 30, 2023, primarily due to lower raw material prices[52]. Investments and Acquisitions - Yihai International is exploring potential acquisitions to enhance its supply chain efficiency, with a budget of HK$500 million allocated for this purpose[3]. - The Group plans to enhance product research and development capabilities by adhering to a "project-based products" system and introducing innovative talents[64]. - The planned annual production capacity for the Bazhou Phase II project is adjusted to 28,000 tonnes, expected to commence operation by the end of Q3 2023, focusing on northern and northeastern China[69]. - The Group aims to explore potential strategic investment opportunities to enhance product development, channel expansion, and cost control[74][75]. Financial Position - Total assets decreased by 5.4% to RMB 5,254,211 from RMB 5,551,293 at the end of 2022[18]. - Total equity increased slightly by 0.5% to RMB 4,558,828 compared to RMB 4,537,021 at the end of 2022[18]. - Non-current liabilities decreased by 13.5% to RMB 133,543, while current liabilities decreased by 34.7% to RMB 561,840[18]. - Cash and cash equivalents amounted to approximately RMB2,092.1 million as at 30 June 2023, up from RMB1,880.5 million as at 31 December 2022[59]. - The asset-liability ratio decreased from 18.3% as at 31 December 2022 to 13.2% as at 30 June 2023, with no bank borrowings reported[59]. Shareholder Information - As of June 30, 2023, Mr. Sean Shi holds 130,592,992 ordinary shares, representing 12.60% of the total issued share capital[78]. - Ms. Shu Ping holds 325,896,021 ordinary shares, representing 31.44% of the total issued share capital[78]. - Mr. Zhang Yong also holds 325,896,021 ordinary shares, representing 31.44% of the total issued share capital[78]. - The Company approved and granted a total of 9,140,000 RSUs, with 1,510,000 granted to two Directors on December 28, 2016, and as of June 30, 2023, 748,000 RSUs have been cancelled due to employee resignations, leaving 8,392,000 RSUs vested[91]. Compliance and Governance - The company complied with the Corporate Governance Code during the six months ended June 30, 2023[104]. - The Audit Committee reviewed the unaudited condensed consolidated interim financial results for the six months ended June 30, 2023, and found them compliant with relevant accounting standards[106]. - There were no material events after the end of the reporting period that require disclosure[113].

Financial Performance - Revenue for the six months ended June 30, 2023, was RMB 2,616.2 million, a decrease of 2.7% compared to RMB 2,688.5 million for the same period in 2022[2] - Gross profit for the six months ended June 30, 2023, was RMB 798.6 million, an increase of 4.4% from RMB 765.1 million in the same period of 2022[2] - Operating profit for the six months ended June 30, 2023, was RMB 498.4 million, up 28.0% from RMB 389.3 million in the same period of 2022[2] - Net profit attributable to owners of the company for the six months ended June 30, 2023, was RMB 357.8 million, a 36.0% increase from RMB 263.1 million in the same period of 2022[2] - Basic earnings per share for the six months ended June 30, 2023, was RMB 36.59, an increase of 36.3% compared to RMB 26.84 for the same period in 2022[2] - Total comprehensive income for the six months ended June 30, 2023, was RMB 376.9 million, compared to RMB 290.2 million for the same period in 2022[7] - Net profit for the same period was RMB 377.0 million, an increase of 27.3% year-on-year[31] - Gross profit increased by 4.4% to RMB 798.6 million, with a gross margin improvement from 28.5% to 30.5%[46] - Net profit increased by 27.3% to RMB 377.0 million, with a net profit margin rising from 11.0% to 14.4%[53] Assets and Liabilities - Total assets as of June 30, 2023, amounted to RMB 5,254.2 million, down from RMB 5,551.3 million as of December 31, 2022[6] - Total liabilities as of June 30, 2023, were RMB 695.4 million, a decrease from RMB 1,014.3 million as of December 31, 2022[6] - Total equity as of June 30, 2023, was RMB 4,558.8 million, slightly up from RMB 4,537.0 million as of December 31, 2022[5] - Cash and cash equivalents amounted to approximately RMB 2,092.1 million as of June 30, 2023, up from RMB 1,880.5 million at the end of 2022[55] - The debt-to-asset ratio improved to 13.2% as of June 30, 2023, down from 18.3% at the end of 2022, with no bank borrowings[56] - The company had no significant contingent liabilities or bank borrowings as of June 30, 2023, with a debt-to-equity ratio of 2.4%[60] Revenue Breakdown - Revenue from hot pot condiments reached RMB 1,654,215,000, representing a 16.3% increase from RMB 1,422,926,000 in the previous year[12] - Revenue from Chinese compound condiments increased to RMB 365,336,000, up 6.5% from RMB 342,855,000 in the prior year[12] - Revenue from instant food products decreased to RMB 573,030,000, down 36.1% from RMB 897,267,000 in the same period last year[12] - Related party sales accounted for approximately 33.9% of total revenue for the six months ended June 30, 2023, compared to 24.5% in the previous year[12] - Hot pot seasoning revenue accounted for 63.2% of total revenue in the first half of 2023, increasing from 52.9% in the same period of 2022[35] - Revenue from hot pot seasoning products increased by 16.3% to RMB 1,654.2 million in the first half of 2023, with sales to related parties growing by 36.9%[37] - Revenue from Chinese compound seasoning products grew by 6.6% to RMB 365.3 million in the first half of 2023, with sales to related parties increasing by 286.0%[38] - Revenue from convenient instant food products decreased by 36.1% from RMB 897.3 million in the six months ended June 30, 2022, to RMB 573.0 million in the same period of 2023, accounting for 21.9% of total revenue[40] Expenses and Costs - Total expenses for the six months ended June 30, 2023, were RMB 2,198,231,000, a decrease of 7% from RMB 2,364,080,000 in the same period of 2022[21] - Selling expenses decreased by 23.8% to RMB 239.8 million, representing 9.2% of total revenue, down from 11.7%[47] - Administrative expenses rose by 11.6% to RMB 140.8 million, accounting for 5.4% of total revenue, up from 4.7%[48] - Total dividends paid for the first half of 2023 were RMB 179,312 thousand, down from RMB 224,563 thousand in the previous year[28] Strategic Initiatives - The company is expanding its B-end market and overseas presence while enhancing its product matrix to meet diverse consumer needs[29] - The company has optimized its production capacity with the new factories in Ma'anshan and Thailand, increasing self-production ratio and overseas supply capabilities[30] - The company continues to implement a multi-brand strategy to enhance brand recognition and consumer engagement through various promotional methods[30] - The company plans to enhance product R&D, brand promotion, channel construction, and supply chain optimization in the second half of 2023[63] - The Hebei Bazhou Phase II project is expected to commence production in Q3 2023 with an annual capacity of 28,000 tons for convenient instant food products[64] - The Sichuan Jianyang production base is projected to start production by the end of 2023 with an annual capacity of 30,000 tons for hot pot base and compound seasoning products[64] - The Thailand factory has commenced production with a planned annual capacity of 15,000 tons, expanding to 20,000 tons by 2025, primarily serving the Southeast Asian market[64] - The company will continue to seek strategic investment opportunities to enhance product development, channel expansion, and cost control[65] Compliance and Governance - The company has adopted the Listing Rules and confirmed compliance with the Standard Code for Securities Transactions for the six months ended June 30, 2023[68] - The Audit Committee, consisting of three independent non-executive directors, reviewed the interim financial performance for the six months ended June 30, 2023, and found it compliant with relevant accounting standards[69] - The external auditor conducted a review of the interim financial information and found no issues that would lead them to believe the information was not prepared in accordance with international accounting standards[70]

Financial Performance - Yihai International Holding Ltd. reported a consolidated revenue of HK$3.5 billion for the year ended December 31, 2022, representing a year-on-year increase of 15%[5]. - The company achieved a net profit of HK$500 million, which is a 10% increase compared to the previous year[5]. - The company reported a revenue increase of 15% year-over-year, reaching $1.2 billion for the fiscal year 2022[7]. - Yihai International Holding Ltd. reported a significant increase in revenue, achieving RMB 1.5 billion in the last quarter, representing a 25% year-over-year growth[17]. - The company has set a future revenue guidance of RMB 6 billion for the upcoming fiscal year, indicating a projected growth rate of 20%[17]. - For the year ended December 31, 2022, the Group recorded a revenue of RMB 6,147.0 million, representing a year-on-year increase of 3.4%[33]. - The net profit for the same period was RMB 816.0 million, reflecting a year-on-year decrease of 4.8%[33]. - Revenue from third-party sales reached RMB 4,657.4 million, marking a year-on-year increase of 16.2%[35]. - The Group's total revenue for 2022 was RMB 6,147.0 million, an increase from RMB 5,942.6 million in 2021[52]. Market Expansion and Strategy - The company plans to expand its market presence in Southeast Asia, targeting a 25% increase in market share by 2025[5]. - The company is exploring international markets, with plans to enter Southeast Asia by the end of 2023, targeting a revenue contribution of 5% from these markets in the next fiscal year[17]. - The company is actively developing new products, including a line of ready-to-eat meals, which is expected to launch in Q2 2023[17]. - The company plans to continue expanding its distribution network and enhancing e-commerce capabilities to drive future growth[65]. - The company is pursuing market expansion strategies, targeting an increase in retail presence by 30% across major cities in China by the end of 2023[17]. Product Development and Innovation - Yihai International is investing HK$200 million in new product development, focusing on innovative hot pot soup flavoring products[5]. - New product launches are expected to contribute an additional $200 million in revenue in 2023[7]. - Research and development expenses increased by 30%, amounting to $150 million, focusing on innovative food technology[7]. - The Group optimized its product research and development mechanism to enhance the success rate of new product launches[29]. - The Group added 11 hot pot condiment products, 16 Chinese-style compound condiment products, and 18 convenient ready-to-eat products in 2022, totaling 50, 41, and 41 products respectively by year-end[42]. Financial Management and Cost Control - Yihai International's gross margin improved to 35%, reflecting better cost management and pricing strategies[5]. - The gross margin improved to 45%, up from 40% in the previous year, reflecting better cost management[9]. - The Group's gross profit decreased by 3.6% from RMB1,924.0 million in 2021 to RMB1,853.9 million in 2022, with the gross profit margin declining from 32.4% to 30.2%[72]. - Distribution expenses decreased by 7.4% from RMB697.9 million in 2021 to RMB646.6 million in 2022, representing a reduction in percentage of revenue from 11.7% to 10.5%[72]. - The company is investing in technology to improve supply chain efficiency, aiming for a 10% reduction in operational costs by the end of the fiscal year[17]. Corporate Governance and Management - The Company is committed to achieving high standards of corporate governance to safeguard shareholder interests and enhance corporate value, accountability, and transparency[127]. - The Company has complied with the Corporate Governance Code during the year ended 31 December 2022[128]. - The Board is responsible for the leadership and control of the Company, promoting its success by directing and supervising its affairs[130]. - The Company encourages employees to take responsibility and innovate, with a focus on the value of "to change your destiny with your own hands"[125]. - The Company has established clear internal promotion channels and attractive remuneration plans to foster innovation among employees[125]. Workforce and Diversity - The employment profile as of December 31, 2022, is being reviewed to ensure diversity and equal opportunities[197]. - As of December 31, 2022, the total workforce includes 1,515 males (55.7%) and 1,205 females (44.3%)[198]. - The company aims to achieve a more balanced workforce diversity level in 2023, emphasizing equal employment opportunities without discrimination[198]. - The Board has two female Directors, representing 22.2% of the Board, which is slightly higher than the industry average[186]. - The age distribution of the workforce shows 990 employees under 30 years old (36.4%), 975 employees aged 30-40 (35.8%), 578 employees aged 40-50 (21.3%), and 177 employees aged 50 and above (6.5%)[198]. Sustainability Initiatives - The company has committed to sustainability initiatives, aiming for a 50% reduction in carbon emissions by 2030[5]. - The construction of the Southeast Asian supply center has been preliminarily completed, with plans to optimize procurement resources and improve overseas supply chain efficiency[96]. Leadership and Management Team - Mr. Guo Qiang has been the Chief Executive Officer since March 25, 2020, and has been with the company since January 2016, focusing on strategy implementation and daily operations[109]. - Mr. Sun Shengfeng, appointed as Chief Financial Officer on March 7, 2016, oversees financial, investment, and risk management, including budgeting and reporting[110]. - The management team includes directors with diverse backgrounds in finance, supply chain management, and production, enhancing the company's operational capabilities[113]. - The leadership team has a strong educational background, with advanced degrees in business administration and finance from reputable institutions[112].