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].

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不負責，對其準確性 或完整性亦不發表任何聲明，並明確表示概不就因本公告全部或任何部份內容而產生或因倚賴 該等內容而引致的任何損失承擔任何責任。 YIHAI INTERNATIONAL HOLDING LTD. 頤海國際控股有限公司 （於開曼群島註冊成立的有限公司） （股份代號：1579） 截至2023年6月30日止六個月 中期業績 頤海國際控股有限公司（「本公司」）董事會（「董事會」）欣然宣佈本公司及其附屬 公司（「本集團」或「我們」）截至2023年6月30日止六個月（「報告期」）的未經審核 綜合中期業績，連同2022年同期的比較數字。 本集團財務摘要 | --- | --- | |-------|----------------------------------------------------------------------------------------------------------------------------------------------------| | | | | • | 截至 2023 年 6 月 3 ...

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].

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不負責，對其準確性 或完整性亦不發表任何聲明，並明確表示概不就因本公告全部或任何部份內容而產生或因倚賴 該等內容而引致的任何損失承擔任何責任。 YIHAI INTERNATIONAL HOLDING LTD. 頤海國際控股有限公司 （於開曼群島註冊成立的有限公司） （股份代號：1579） 截至2022年12月31日止年度 年度業績公告 頤海國際控股有限公司（「本公司」）董事（「董事」）會（「董事會」）欣然宣佈本公司 及其附屬公司（統稱「本集團」）截至2022年12月31日止年度（「報告期」）的經審核 綜合業績，連同2021年同期的比較數字。 本集團財務摘要 | --- | --- | |-------|------------------------------------------------------------------------------------------------------| | | | | | • 2022 年的收入為人民幣 6,147.0 百萬元，較 2021 年的人民幣 5,942.6 百萬元增 加 3.4% ...

Financial Performance - Yihai International Holding Ltd. reported a revenue of approximately HKD 3.5 billion for the fiscal year 2021, representing a year-on-year increase of 25%[2]. - The company achieved a net profit of around HKD 600 million in 2021, which is a 30% increase compared to the previous year[2]. - The company reported a significant increase in revenue, achieving RMB 1.5 billion for the year ended December 31, representing a growth of 25% compared to the previous year[28]. - In 2021, Yihai International's revenue reached RMB 5,942,617, an increase of 10.8% from RMB 5,360,021 in 2020[29]. - The Group's total revenue for 2021 was RMB 5,942.6 million, reflecting effective pandemic control measures[98]. - The Group's net profit declined by 12.7% from RMB 982.9 million in 2020 to RMB 857.6 million in 2021, with a net profit margin dropping from 18.3% to 14.4%[129]. Customer Growth and Market Expansion - User data indicated that the number of active customers increased by 15% year-on-year, reaching approximately 2 million[2]. - User data showed a rise in active customers, with a total of 3 million users, marking a 15% increase year-over-year[28]. - The company plans to expand its market presence by opening 50 new stores in 2022, targeting key urban areas in China[2]. - The company plans to enter new international markets, specifically targeting Southeast Asia by the end of the next fiscal year[28]. - Future outlook includes plans for market expansion and the introduction of new products to enhance customer experience[10]. Product Development and Innovation - Yihai International is investing HKD 200 million in research and development for new product lines, including innovative hotpot flavoring products[2]. - The company is focused on research and development of new technologies to improve product offerings and operational efficiency[10]. - The Group launched a total of 39 new products in 2021, including 8 hot pot condiments, 18 Chinese-style compound condiments, and 13 convenient ready-to-eat food products[68]. - New product launches included self-heating hot pot products, which are expected to contribute an additional RMB 200 million in sales[28]. - The Group's management emphasized continuous product innovation and optimization of the product project system to improve market responsiveness[64]. E-commerce and Sales Channels - Yihai International's e-commerce sales grew by 40% in 2021, contributing significantly to overall revenue growth[2]. - The Group's e-commerce channel sales revenue was RMB 321.3 million, representing a year-on-year growth of 11.8%[63]. - Future strategies include enhancing online sales channels, with a goal to increase e-commerce revenue by 40%[28]. - The Group aims to enhance market share through segmented channel operations and improve sales efficiency on e-commerce platforms[170]. Financial Challenges and Operational Efficiency - The company reported a gross margin of 35% for 2021, reflecting improved operational efficiency and cost management[2]. - Gross profit for 2021 was RMB 1,923,953, down 8.0% from RMB 2,090,110 in 2020, indicating challenges in maintaining profitability[29]. - The company faced operational challenges due to the pandemic, affecting raw material procurement and sales operations, leading to a decline in gross profit margins[32][34]. - The Group's cost of sales increased by 22.9% from RMB 3,269.9 million in 2020 to RMB 4,018.7 million in 2021[105]. - Distribution expenses rose by 23.9% from RMB 563.5 million in 2020 to RMB 697.9 million in 2021, increasing as a percentage of revenue from 10.5% to 11.7%[112]. Strategic Partnerships and Acquisitions - Yihai International is exploring potential acquisitions to enhance its supply chain and product offerings, with a focus on complementary food brands[2]. - The company entered into a Master Sales Agreement with Haidilao on December 7, 2020, for the supply of customized and retail products[9]. - A strategic acquisition of a local competitor was announced, expected to enhance market share by 10%[28]. - The company has established strategic partnerships to enhance supply chain management and product distribution[10]. Leadership and Management - Mr. Guo Qiang was appointed as the Chief Executive Officer on March 25, 2020, and is responsible for implementing the Board's strategy and managing daily operations[190]. - The company has a diverse leadership team with directors holding positions in various subsidiaries across different countries, including Singapore, the US, and Canada[187][191]. - The executive team has a strong educational background, with several members holding advanced degrees in business administration[193][194]. - Mr. Zhao Xiaokai was appointed as an executive Director on August 25, 2020, and is currently the director of the supply system[198].