Investment Rating - The report does not explicitly provide an investment rating for the jelly industry Core Insights - The Chinese large cup mixed jelly industry has experienced rapid growth, capturing a significant share of the snack food market, particularly favored by the younger generation due to its diverse flavors and unique textures [4] - The market is characterized by a shift towards health-oriented products, with the proportion of healthy jelly options increasing from 12% in 2018 to 28% in 2023, driven by consumer demand for low-sugar and functional ingredients [7][10] - The competitive landscape is evolving, with established brands facing challenges from emerging and cross-industry brands that leverage innovation and differentiation strategies [28] Market Background - The large cup mixed jelly is defined as a product containing multiple flavors in a single large package, typically over 150 grams, made from ingredients like water, sugar, and konjac powder [5] - The industry has evolved through several stages, from its nascent phase in the 1980s to becoming the largest jelly market globally by the early 21st century, with a focus on health and personalization in recent years [6] Market Status - The market size reached 22.4 billion yuan in 2023, with a compound annual growth rate (CAGR) of 2.29% from 2018 to 2023, indicating steady expansion [7] - The demand is primarily driven by female consumers, who contribute over 65% of online sales, and the average price point for high-end products is between 15-25 yuan, with a repurchase rate of 60% [10] Market Competition - The competitive landscape is tiered, with leading brands like Xianzhibao and Crayon Shin-chan in the first tier, and brands like Hiyori and Qinqin in the second tier, each leveraging production capacity and innovation to maintain market share [15] - The evaluation of brands is based on product quality, brand strength, and technological capabilities, with a focus on natural ingredients and innovative production methods [11][14] Development Trends - Health innovation is becoming a consumer favorite, with a growing emphasis on low-sugar and natural ingredient products, leading to the adoption of advanced preservation technologies [26] - Personalization and premiumization are driving market trends, with brands collaborating with popular IPs and focusing on high-quality ingredients and unique flavor combinations to attract discerning consumers [27]

Group 1 - As of June 3, a total of 105 stocks reached their 52-week highs, with Huayin International Holdings (00989), Dingyifeng Holdings (00612), and Youquhui Holdings (02177) leading the high rate at 57.26%, 37.93%, and 23.02% respectively [1] - The closing prices and highest prices for the top three stocks are as follows: Huayin International Holdings at 1.370 and 1.950, Dingyifeng Holdings at 0.770 and 0.800, and Youquhui Holdings at 3.550 and 3.580 [1] - Other notable stocks that reached their 52-week highs include China Antibody-B (03681) with a high rate of 21.62% and Fengcheng Holdings (02295) at 19.52% [1] Group 2 - The report also lists stocks that reached their 52-week lows, with Des Holdings (08437) showing the largest decline at -38.79%, followed by Dimi Life Holdings (01667) at -20.50% [3] - The closing prices and lowest prices for the top three stocks that reached their lows are: Des Holdings at 0.177 and 0.071, Dimi Life Holdings at 0.140 and 0.128, and Lujizhi Technology (01745) at 0.197 and 0.194 [3] - Other stocks with significant declines include GBA Group (00261) at -11.48% and Baide International (02668) at -10.88% [3]

以下文章来源于斑马消费 ，作者陈晓京 谁还在吃果冻？果冻行业日子过得好不好，可以从行业头部企业的业绩中窥之一二。 斑马消费 . 寻找泛消费领域的斑马企业 来源|斑马新消费 作者|陈晓京 连亏3年后，"果冻大王"亲亲食品终于扭亏为盈。 公司在2024年实现盈利，主要是没有处置不良资产带来的亏损，加上管理效率提升等，扭转局面相对轻松。 但从收入结构来看，除了膨化及糖果产品拉动收入，果冻产品销售仍处于下滑态势，比上年少卖了约3600万元。 果冻是亲亲食品的起家产品，近年为了适应市场需求，增加了亲亲吸果冻、轻零冻以及0卡等产品，随着渠道骤变，以及寄予厚望构建消费品版图的投资业 务接连失利，这家本土休闲食品企业面临严峻考验。 近年量贩零食行业突飞猛进，一步步蚕食传统休闲食品厂商的市场份额。为了保住仅有的利润，厂商们不得不寻求合作，和新兴渠道零售商打成一片，这 真能解救果冻主业吗？答案留给时间。 01 果冻卖不动了 3月17日盘后，亲亲食品（01583.HK）披露2024年全年业绩，实现营业收入9.97亿元，同比微增1.5%，公司股东应占利润为2113.0万元，一举扭转连续3年 亏损的局面。 收入微增的情况下，业绩大幅改 ...

Core Viewpoint - Qinqin Food has returned to profitability in 2024 after three years of losses, driven by a slight revenue increase and improved cost management [2][5]. Financial Performance - In 2024, Qinqin Food achieved revenue of 996 million yuan, a year-on-year increase of 1.5%, and a net profit attributable to shareholders of 21.13 million yuan, compared to a loss of 2.002 million yuan in the previous year [2]. - The company's revenue growth has slowed compared to previous years, and it has not yet returned to the revenue scale of over 1 billion yuan seen in 2015 [6]. Product Performance - Jelly products remain the largest revenue contributor, generating sales of 531 million yuan in 2024, a decrease of approximately 6.5% year-on-year, accounting for 53.2% of total revenue [3]. - The seasoning business also performed poorly, with sales declining by 6.6% in 2024 [3]. - Conversely, the puffed food category saw growth, achieving sales of 312 million yuan, a year-on-year increase of 13.7% [3]. Growth Drivers - Other product categories, including candy, dried fruits, nuts, biscuits, baked goods, and rice wine, experienced a 30% increase in sales, primarily due to the introduction of new rice wine products [4]. - Qinqin Food established its first rice wine production base in Xiaogan, Hubei, which began trial production in 2020 [4]. Strategic Adjustments - The company has been adjusting its investment strategy, closing a loss-making production base in Ningxia and recording a one-time disposal loss of approximately 6.1 million yuan [7][8]. - In 2024, Qinqin Food reported no net losses from fair value changes, a significant improvement compared to previous years [7]. Profitability and Cost Management - The gross profit margin for 2024 was 28.3%, an increase of 1.9 percentage points year-on-year, although it has decreased from 42.4% a decade ago [8]. - The company is focusing on enhancing profitability through improved production management and cost control, while also exploring investment opportunities in rapidly growing consumer goods companies [7][8].

Core Viewpoint - Qinqin Food has returned to profitability after three years, reporting a revenue of 996 million yuan in 2024, a 1.5% increase year-on-year, and a net profit of 21.13 million yuan, compared to a loss of 2 million yuan in the previous year [1][2]. Revenue Performance - The company achieved a revenue of 996 million yuan in 2024, with a year-on-year growth of 1.5% [1]. - The jelly product line remains the largest revenue contributor, generating 531 million yuan in sales, but this represents a decline of approximately 6.5% compared to 2023, accounting for 53.2% of total revenue [2][3]. - The seasoning business also saw a decline, with sales dropping by 6.6% in 2024 [2]. - In contrast, the puffed food segment, which includes shrimp strips and chips, experienced growth, with sales reaching 312 million yuan, a 13.7% increase year-on-year [2][3]. Product Diversification - Other product categories, including candy, dried fruits, nuts, biscuits, and rice wine, contributed to revenue growth, with a 30% increase in sales attributed mainly to new rice wine products [3]. - Qinqin Food has established a rice wine production base in Xiaogan, Hubei, which began trial production in 2020 [3]. Investment and Operational Adjustments - The company has been adjusting its investment strategy, closing a loss-making production base in Ningxia and recording a one-time disposal loss of approximately 6.1 million yuan [5][6]. - Qinqin Food reported a net loss of 0 yuan from fair value changes in 2024, marking a significant improvement compared to previous years [5]. - The gross profit margin for 2024 was 28.3%, an increase of 1.9 percentage points year-on-year, although it remains lower than the 42.4% margin reported a decade ago [6]. Strategic Outlook - The company is exploring growth opportunities through brand expansion, channel iteration, and market penetration, while also seeking investment in rapidly developing consumer goods that align with its business [4][5]. - The challenges faced by Qinqin Food include increased competition from emerging snack brands and changing consumer preferences towards healthier and more convenient options [6].

Financial Performance - Total revenue for the fiscal year ended December 31, 2024, was RMB 996,497,000, representing a 1.5% increase from RMB 981,574,000 in 2023[2] - Gross profit increased by 9.0% to RMB 282,068,000, with a gross margin of 28.3%, up from 26.4% in the previous year[2] - Net profit attributable to shareholders was RMB 21,130,000, a significant turnaround from a loss of RMB 2,002,000 in 2023, marking an 11.6 times increase[2] - Adjusted EBITDA rose by 10.3% to RMB 101,306,000 compared to RMB 91,861,000 in the prior year[2] - The company reported a comprehensive income of RMB 18,337,000 for the year, compared to a loss of RMB 33,478,000 in 2023[5] - Basic earnings per share for the year was RMB 0.028, a recovery from a loss of RMB 0.003 per share in the previous year[35] - The annual profit for 2024 was RMB 21,130,000, compared to a loss of RMB 2,056,000 in 2023, indicating a significant turnaround[73] Dividends and Equity - The company proposed a final dividend of RMB 0.020 per share, compared to no dividend in the previous year[2] - Total equity increased to RMB 1,219,861 thousand in 2024 from RMB 1,201,338 thousand in 2023, reflecting a growth of 1.5%[8] - The proposed final dividend for the year ending December 31, 2024, is RMB 0.02 per share, totaling approximately RMB 15,102,000, pending shareholder approval on May 16, 2025[37] Cash Flow and Financial Position - Net cash position improved by 81.7% to RMB 415,079,000 from RMB 228,442,000 in 2023[2] - Total liabilities decreased to RMB 724,004 thousand in 2024 from RMB 762,735 thousand in 2023, representing a reduction of 5.1%[8] - The total borrowings decreased to RMB 172,467 thousand in 2024 from RMB 292,294 thousand in 2023, with a weighted average interest rate of 2.71%, down from 3.03% in the previous year[54][56] - The group has trade financing of RMB 340.0 million, of which RMB 233.0 million has been utilized as of December 31, 2024, with a weighted average effective annual interest rate of 1.03%[94] Operational Efficiency - Inventory turnover period improved to 12 days from 16 days, while accounts receivable turnover period increased to 4 days from 2 days[2] - The company aims to enhance operational efficiency through digital transformation and talent development, focusing on sustainable growth and core competitiveness[94] - The company aims to enhance production facilities' automation to reduce labor costs and improve production efficiency[90] Product Performance - Revenue from candy and jelly products reached RMB 530,638 thousand, contributing significantly to the total group revenue of RMB 996,497 thousand for the year ended December 31, 2024[20] - Jelly product sales amounted to approximately RMB 530.6 million, a year-on-year decrease of about 6.5%, accounting for 53.2% of total revenue[62] - Sales of puffed products increased by approximately 13.7% to RMB 311.7 million, representing 31.3% of total revenue, with a gross profit of RMB 86.3 million, up 23.5%[64] - Sales of candy and other products rose by approximately 31.3% to RMB 80.5 million, with a gross profit increase of approximately 125.9% to RMB 18.3 million[67] Strategic Initiatives - The company plans to continue expanding its product lines and enhancing its distribution channels to drive future growth[20] - The company launched a new product, zero-calorie jelly, which aligns with health trends and has shown good market performance, contributing to a 20% increase in sales for the jelly product line[77] - The company introduced a new non-fried snack, "Seaweed Crisps," which caters to health-conscious consumers and is part of its strategy to enhance its market position in the snack segment[79] - The company plans to enhance the management of distribution channels and retail endpoints, increasing the number of retail points and expanding product sales in areas surrounding production bases[81] Challenges and Market Conditions - The competitive landscape in the Chinese snack industry remains challenging, with increasing competition from emerging brands and rising costs impacting operational performance[58] - The company has seen significant sales growth through new snack chain stores, although traditional sales channels experienced a decline due to competitive pricing from these new stores[84] Governance and Compliance - The company has adopted corporate governance policies in line with the highest standards to manage business risks and enhance transparency[109] - All directors confirmed compliance with the standard code of conduct for securities trading for the year ending December 31, 2024[111] - The audit committee, consisting of all three independent non-executive directors, reviewed the financial statements for the year ending December 31, 2024[114]

Financial Performance - Revenue for the six months ended June 30, 2024, was RMB 563,585 thousand, a decrease of 0.9% compared to RMB 568,823 thousand in the same period of 2023[6] - Gross profit increased by 3.4% to RMB 171,722 thousand, with a gross margin of 30.5%, up from 29.2%[6] - Profit attributable to shareholders rose by 25.4% to RMB 32,809 thousand, with earnings per share increasing to RMB 0.043 from RMB 0.035[6] - Revenue for the six months ended June 30, 2024, was RMB 563,585 thousand, a decrease of 0.4% compared to RMB 568,823 thousand in the same period of 2023[14] - Gross profit increased to RMB 171,722 thousand, up 3.9% from RMB 166,088 thousand year-on-year[14] - Operating profit rose to RMB 35,476 thousand, reflecting a growth of 1.8% from RMB 34,837 thousand in the previous year[14] - Net profit for the period was RMB 32,809 thousand, an increase of 25.5% compared to RMB 26,105 thousand in the same period last year[14] - Basic and diluted earnings per share increased to RMB 0.043, up from RMB 0.035 in the previous year, representing a growth of 22.9%[14] - The company reported a total comprehensive income of RMB 32,588 thousand, compared to RMB 25,519 thousand in the same period last year, marking a growth of 27.5%[15] - The company reported a profit of RMB 32,809 thousand for the six months ended June 30, 2024, compared to a profit of RMB 26,159 thousand for the same period in 2023, representing a year-over-year increase of approximately 25%[19] Assets and Liabilities - Total assets decreased by 6.1% to RMB 1,843,465 thousand from RMB 1,964,073 thousand[7] - Total liabilities reduced to RMB 609,343 thousand, down 20.0% from RMB 762,735 thousand at the end of 2023[17] - Cash and bank balances decreased to RMB 498,144 thousand from RMB 520,736 thousand, a decline of 4.3%[16] - Inventory levels decreased significantly to RMB 92,936 thousand from RMB 136,948 thousand, a reduction of 32.1%[16] - As of June 30, 2024, total equity reached RMB 1,234,122 thousand, an increase from RMB 1,201,338 thousand as of January 1, 2024[19] - The company’s total liabilities decreased from RMB 563 thousand as of January 1, 2024, to zero as of June 30, 2024, indicating a significant reduction in debt[19] Cash Flow and Investments - The net cash generated from operating activities for the six months ended June 30, 2024, was RMB 42,404 thousand, compared to a net cash used of RMB 68,351 thousand for the same period in 2023[21] - The company reported a net cash used in investing activities of RMB 80,359 thousand for the six months ended June 30, 2024, compared to RMB 110,785 thousand in the same period in 2023[21] - The company invested RMB 51,090 thousand in property, plant, and equipment during the reporting period, a decrease from RMB 105,314 thousand in the same period last year[21] - The company’s capital expenditure for the six months ended June 30, 2024, was RMB 10,524 thousand, with allocated capital expenditure of RMB 10,517 thousand[41] Operational Insights - The management discussion and analysis section provides insights into operational strategies and market conditions affecting performance[9] - The jelly product segment generated revenue of RMB 338,625 thousand, while the puffed food segment contributed RMB 153,500 thousand[42] - The group faced challenges from increased competition in the jelly product segment, particularly from lower-priced products introduced by competitors[82] - The group plans to implement strategies to increase sales and improve profitability in the jelly product division despite the decline in sales[83] - The company is committed to developing high-quality, healthy, and nutritious products, enhancing innovation capabilities in product development and packaging design[91] Employee and Governance - The company’s management compensation for the six months ended June 30, 2024, was approximately RMB 2,067,000, slightly down from RMB 2,136,000 for the same period in 2023[76] - The group has committed to continuous education and development for employees, providing various internal and external training courses[102] - The audit committee, composed of three independent non-executive directors, has reviewed the unaudited interim results for the six months ended June 30, 2024[118] - The company has adhered to all provisions of the corporate governance code during the six months ended June 30, 2024[113] Market and Risk Management - The group faces various financial risks, including market risk, credit risk, and liquidity risk, with no changes in risk management policies since December 31, 2023[31] - The group closely monitors exchange rate risks related to HKD and USD to maintain them at acceptable levels[103] Shareholder Information - The major shareholder, Sure Wonder Limited, holds 425,806,219 shares, representing 56.39% of the company's equity as of June 30, 2024[108] - Tianli Investment Limited holds 45,645,799 shares, accounting for approximately 6.05% of the company's equity[108]

[Financial Highlights & Performance Overview](index=1&type=section&id=Financial%20Highlights%20%26%20Performance%20Overview) The company's H1 2024 financial performance showed slight revenue decline but significant profit growth from improved margins and cost control [Key Financial Metrics](index=1&type=section&id=Key%20Financial%20Metrics) For the six months ended June 30, 2024, revenue slightly decreased, but gross profit increased by 3.4% and profit attributable to owners of the Company grew by 25.4% | Metric | Six Months Ended June 30, 2024 (Thousand Yuan) | Six Months Ended June 30, 2023 (Thousand Yuan) | Change | | :--- | :--- | :--- | :--- | | **Revenue** | 563,585 | 568,823 | -0.9% | | **Gross Profit** | 171,722 | 166,088 | +3.4% | | **Gross Margin** | 30.5% | 29.2% | +1.3 percentage points | | **Profit Attributable to Owners** | 32,809 | 26,159 | +25.4% | | **Basic EPS** | RMB 0.043 | RMB 0.035 | +22.9% | | **Net Cash Position** | 226,282 | - | - | [Overall Performance Review](index=34&type=section&id=Overall%20Performance%20Review) Total revenue slightly decreased by 0.9%, but net profit significantly increased due to improved gross margin and reduced tax expenses - Revenue for the reporting period was approximately **RMB 563.6 million**, a **0.9% year-on-year decrease**, primarily due to reduced jelly product sales, partially offset by increased sales of puffed food, confectionery, and other products[71](index=71&type=chunk) - Profit attributable to owners of the Company increased by approximately **RMB 6.6 million** year-on-year, mainly benefiting from improved gross margin, the base effect of investment losses in the prior period, and a significant reduction in current tax expenses[71](index=71&type=chunk)[72](index=72&type=chunk) - A one-time loss on disposal of property, plant, and equipment of approximately **RMB 6.1 million** was recorded due to the closure of the continuously loss-making Ningxia production base[71](index=71&type=chunk) [Segment Performance](index=17&type=section&id=Segment%20Performance) Puffed food and confectionery segments showed strong growth, offsetting jelly product decline, while seasoning products remained stable [Segment Revenue and Profit](index=17&type=section&id=Segment%20Revenue%20and%20Profit) Puffed food and confectionery & other products showed strong revenue growth, offsetting jelly product decline, with seasoning products stable | Business Segment | H1 2024 Revenue (Thousand Yuan) | H1 2023 Revenue (Thousand Yuan) | YoY Change | H1 2024 Gross Profit (Thousand Yuan) | | :--- | :--- | :--- | :--- | :--- | | Jelly Products | 338,625 | 381,904 | -11.3% | 106,286 | | Puffed Food Products | 153,500 | 126,109 | +21.7% | 44,542 | | Seasoning Products | 41,503 | 41,454 | +0.1% | 14,786 | | Confectionery and Other Products | 29,957 | 19,356 | +54.8% | 6,108 | [Jelly Products](index=35&type=section&id=Jelly%20Products) Jelly product sales declined by 11.3% to RMB 339 million, but gross margin improved to 31.4% from cost efficiencies - Sales decreased by **11.3%** to **RMB 338.6 million**, primarily due to the rise of emerging snack brand stores, leading to a decline in traditional channel sales not fully offset by new channel growth[73](index=73&type=chunk) - Gross margin increased from **30.4%** to **31.4%**, mainly due to a slight decrease in some raw material costs and improved production management efficiency[73](index=73&type=chunk) [Puffed Food Products](index=36&type=section&id=Puffed%20Food%20Products) Puffed food sales grew strongly by 21.7% to RMB 154 million, driven by channel expansion, and gross margin improved to 29.0% - Sales increased by **21.7%** year-on-year to **RMB 153.5 million**, primarily due to continuous expansion of sales channels, especially in new markets like South, Southwest, and Northwest China[74](index=74&type=chunk) - Gross margin increased from **26.8%** to **29.0%**, benefiting from economies of scale due to increased sales volume and improved production management efficiency[74](index=74&type=chunk) [Seasoning Products](index=36&type=section&id=Seasoning%20Products) Seasoning product sales remained stable at RMB 41.5 million, with gross margin improving to 35.6% due to lower raw material costs - Sales remained flat compared to the prior period, at approximately **RMB 41.5 million**[75](index=75&type=chunk) - Gross margin increased from **32.5%** to **35.6%**, primarily due to a decrease in major raw material costs compared to the prior period[75](index=75&type=chunk) [Confectionery and Other Products](index=37&type=section&id=Confectionery%20and%20Other%20Products) Confectionery and other product sales surged by 54.6% to RMB 30 million, and gross margin improved to 20.4% - Sales increased by **54.6%** year-on-year to **RMB 30 million**, primarily due to increased sales of new rice wine products[76](index=76&type=chunk) - Gross margin significantly increased from **13.7%** to **20.4%**, benefiting from improved economies of scale due to increased sales volume[76](index=76&type=chunk) [Operational and Financial Condition Analysis](index=37&type=section&id=Operational%20and%20Financial%20Condition%20Analysis) Operational and financial analysis shows increased distribution costs, stable administrative expenses, improved liquidity, and positive operating cash flow [Cost and Expense Analysis](index=37&type=section&id=Cost%20and%20Expense%20Analysis) Distribution and selling expenses increased by 5.0% to RMB 67.4 million, while administrative expenses remained stable at RMB 68.7 million - Distribution and selling expenses increased by **5.0%** year-on-year to **RMB 67.4 million**, primarily due to increased transportation costs from higher puffed food sales[77](index=77&type=chunk) - Administrative expenses slightly increased by **0.3%** year-on-year to **RMB 68.7 million**, with increased depreciation from new production bases offset by approximately **RMB 5 million** reduction in staff costs due to departmental restructuring[78](index=78&type=chunk) [Financial Position](index=5&type=section&id=Financial%20Position) As of June 30, 2024, the Group maintained a robust financial position with increased net current assets and a net cash position | Metric | June 30, 2024 (Thousand Yuan) | December 31, 2023 (Thousand Yuan) | Change | | :--- | :--- | :--- | :--- | | Total Assets | 1,843,465 | 1,964,073 | -6.1% | | Total Liabilities | 609,343 | 762,735 | -20.1% | | Total Equity Attributable to Owners | 1,234,122 | 1,201,338 | +2.7% | | Net Current Assets | 204,646 | 153,485 | +33.3% | | Cash and Bank Balances | 498,144 | 520,736 | -4.3% | | Bank Loans | 271,862 | 292,294 | -7.0% | - The Group was in a net cash position at the end of the reporting period, with cash and bank balances of **RMB 498 million** and bank loans of **RMB 272 million**[87](index=87&type=chunk) [Cash Flow and Capital Resources](index=8&type=section&id=Cash%20Flow%20and%20Capital%20Resources) Operating cash flow significantly improved to a net inflow of RMB 42.4 million, with investing and financing activities resulting in net outflows | Cash Flow Item | H1 2024 (Thousand Yuan) | H1 2023 (Thousand Yuan) | | :--- | :--- | :--- | | Net Cash Generated from Operating Activities | 42,404 | (68,351) | | Net Cash Used in Investing Activities | (80,359) | (110,785) | | Net Cash (Used in)/Generated from Financing Activities | (20,432) | 74,001 | | Net Decrease in Cash and Cash Equivalents | (58,387) | (105,135) | - Capital expenditure for the first half was **RMB 10.5 million**, primarily for new production base construction and purchasing new production equipment in China[88](index=88&type=chunk) [Strategic Investment Projects](index=38&type=section&id=Strategic%20Investment%20Projects) The Group maintained strategic investments without new additions, recognizing a fair value loss of RMB 1.3 million due to underperforming investees - No new strategic investment projects were added during the reporting period[79](index=79&type=chunk) - Due to the investee companies' operating performance falling short of expectations, the Group recognized a fair value loss of approximately **RMB 1.3 million** (prior period: RMB 0.6 million) through other comprehensive income during the reporting period[79](index=79&type=chunk) [Business Strategy and Outlook](index=39&type=section&id=Business%20Strategy%20and%20Outlook) The company's business strategy focuses on product innovation, channel expansion, production upgrades, internal management, and synergistic investments [Product Development and Upgrade](index=39&type=section&id=Product%20Development%20and%20Upgrade) The company will continue to develop high-quality, healthy products, with specific strategies for each category to enhance gross margin and expand channels - The company is committed to developing natural, healthy, nutritious, and delicious high-quality products, increasing investment in product innovation, production facilities, and quality inspection equipment[80](index=80&type=chunk) - Product line strategies include: jelly (gross margin improvement), puffed food (market position consolidation), seasoning (catering channel expansion), and other snacks (healthy new product development)[80](index=80&type=chunk) [Channel Expansion and Marketing](index=40&type=section&id=Channel%20Expansion%20and%20Marketing) The company is expanding into new channels, adjusting e-commerce strategy to high-margin products, and leveraging social media for brand visibility - Actively expanding into new channels such as snack brand stores, convenience stores, and campus stores; sales through new snack chain stores significantly increased during the reporting period, while traditional channel sales decreased accordingly[82](index=82&type=chunk) - E-commerce strategy adjusted to increase the sales proportion of high-margin self-produced products and utilize online platforms and live streaming for promotion[82](index=82&type=chunk) - Will fully utilize social media platforms like WeChat, Weibo, Douyin, and Xiaohongshu for marketing exposure to enhance brand visibility[81](index=81&type=chunk) [Production Facilities and Operations](index=41&type=section&id=Production%20Facilities%20and%20Operations) The Group closed its loss-making Ningxia production base, incurring a RMB 6.1 million disposal loss, while investing in automation and upgrades - Due to continuous losses, the production base in Ningxia, Gansu Province, was closed, resulting in a one-time disposal loss of approximately **RMB 6.1 million** recorded during the reporting period[83](index=83&type=chunk) - Continuously enhancing automation capabilities through introducing advanced production lines and equipment upgrades to reduce labor costs and improve production efficiency[84](index=84&type=chunk) [Future Outlook and Strategy](index=42&type=section&id=Future%20Outlook%20and%20Strategy) The Group's future strategy focuses on product innovation, channel expansion, production upgrades, internal management, and synergistic investments - Will adhere to a multi-category and high cost-performance product strategy in the future, seizing consumer upgrade opportunities through continuous innovation[85](index=85&type=chunk) - Focus on expanding into new market channels such as e-commerce, snack brand stores, and catering to increase market penetration[85](index=85&type=chunk) - Continue to invest in production facility upgrades, talent development, and information management systems to enhance core competitiveness[86](index=86&type=chunk) [Key Notes to Financial Statements](index=9&type=section&id=Key%20Notes%20to%20Financial%20Statements) Key notes cover financial risk management, share capital and dividends, and commitments, contingent liabilities, and asset pledges [Financial Risk Management](index=11&type=section&id=Financial%20Risk%20Management) The Group faces market, credit, and liquidity risks, with no significant changes in policies, maintaining controllable liquidity - The Group's primary financial risks are market risk, credit risk, and liquidity risk, with no significant changes in risk management policies[20](index=20&type=chunk) - The Group has numerous customers, with no significant concentration of credit risk in accounts receivable, and credit terms typically range from **30 to 90 days**[54](index=54&type=chunk) [Share Capital and Dividends](index=22&type=section&id=Share%20Capital%20and%20Dividends) The Board decided not to declare an interim dividend, with 755,096,557 shares in issue and 5,348,000 unexercised share options - The Board decided not to declare an interim dividend for the six months ended June 30, 2024[49](index=49&type=chunk)[93](index=93&type=chunk) - As of June 30, 2024, **5,348,000** share options remained unexercised under the share option scheme, with an exercise price of **HKD 2.19** per share[57](index=57&type=chunk)[58](index=58&type=chunk) [Commitments and Asset Pledges](index=30&type=section&id=Commitments%20and%20Asset%20Pledges) As of June 30, 2024, the Group had RMB 33 million in capital commitments, no significant contingent liabilities, and pledged RMB 573 million in assets - As of June 30, 2024, total contracted but unprovided capital commitments amounted to **RMB 33.03 million**[63](index=63&type=chunk)[89](index=89&type=chunk) - The Group pledged land use rights and buildings with a net book value of **RMB 572.7 million** as collateral for bank borrowings of **RMB 216.2 million**[90](index=90&type=chunk)[51](index=51&type=chunk) - The Group had no significant contingent liabilities[89](index=89&type=chunk) [Corporate Governance and Other Information](index=45&type=section&id=Corporate%20Governance%20and%20Other%20Information) This section covers corporate governance compliance, financial data review, and human resources details [Corporate Governance and Compliance](index=46&type=section&id=Corporate%20Governance%20and%20Compliance) The company complied with Corporate Governance Code provisions, with interim results reviewed by the Audit Committee and auditor - The company consistently complied with all code provisions of the Corporate Governance Code during the reporting period[94](index=94&type=chunk) - The interim financial information has been reviewed by the company's Audit Committee and auditor, Tianzhi Hong Kong Certified Public Accountants Limited[98](index=98&type=chunk)[3](index=3&type=chunk) [Human Resources](index=45&type=section&id=Human%20Resources) As of June 30, 2024, the Group had approximately 2,400 employees, with total employee benefit expenses decreasing by 7.5% due to cost-saving measures - As of June 30, 2024, the Group had approximately **2,400 employees**, a decrease from **2,500** at the end of 2023[91](index=91&type=chunk) - Total employee benefit expenses were approximately **RMB 97.6 million**, a year-on-year decrease of approximately **7.5%**, mainly due to cost-saving measures, departmental restructuring, and increased automation[91](index=91&type=chunk)[40](index=40&type=chunk)

Financial Performance - The company's total sales revenue for the fiscal year 2023 was approximately RMB 981.6 million, representing a year-on-year increase of 2.5% compared to RMB 957.6 million in fiscal year 2022[11]. - Gross profit for the fiscal year 2023 was approximately RMB 258.9 million, an increase of RMB 11.6 million or 4.7% from RMB 247.3 million in fiscal year 2022, with a gross margin of 26.4%, up 0.6 percentage points from 25.8%[11]. - The company recorded a net loss attributable to shareholders of approximately RMB 2.0 million in fiscal year 2023, compared to a net loss of RMB 1.4 million in fiscal year 2022, representing an increase in net loss of RMB 0.6 million[11]. - The company reported a significant increase in EBITDA of 19.5%, reaching RMB 91.9 million in fiscal year 2023 compared to RMB 76.9 million in fiscal year 2022[20]. - Distribution and selling expenses decreased by approximately 11.7% to RMB 123.3 million in 2023 from RMB 139.6 million in 2022, accounting for 12.6% of total revenue[36]. - Administrative expenses rose by approximately 11.8% to RMB 137.2 million in 2023 from RMB 122.7 million in 2022, representing 14.0% of total revenue[37]. - The fair value loss on investments was approximately RMB 31.4 million in 2023, a slight decrease from RMB 33.6 million in 2022, due to ongoing impacts from the COVID-19 pandemic[38]. - The group has maintained a strong financial position with cash and bank balances of RMB 520.7 million as of December 31, 2023, compared to RMB 502.1 million in 2022, and bank loans of RMB 292.3 million, up from RMB 228.0 million in 2022[60]. - Total equity decreased by approximately 2.7% to RMB 1,201.3 million as of December 31, 2023, from RMB 1,234.7 million in 2022[81]. Operational Efficiency - The company has completed the construction of new production bases in five different regions of China, enhancing production capacity and environmental efficiency to support long-term development[24]. - The total energy consumption increased by 5.0% in 2023, primarily due to higher automation levels and extended operation times of air conditioning systems at the new production base[48]. - Water consumption density increased by 11.4% year-on-year, mainly due to wastage from aging water pipes and increased cleaning frequency at the new production base[48]. - The company plans to improve packaging efficiency and reduce material consumption through various initiatives, including upgrading printing devices and packaging equipment[33]. - The group is focused on optimizing resources, constructing new plants, and upgrading equipment to enhance production capacity and efficiency for long-term development[79]. - The group aims to enhance the automation of production facilities to reduce the impact of rising labor costs, collaborating with foreign equipment companies to introduce advanced production lines for jelly and puffed products[58]. Environmental and Sustainability Initiatives - The company aims to mitigate the impact of climate change on agricultural productivity by investing in environmentally friendly equipment and production processes[13]. - In 2023, the total amount of plastic packaging used increased by 30.3% to 10,667.35 tons compared to 8,187.02 tons in 2022, driven by higher sales of pudding and rice wine products[31]. - The density of plastic used per unit increased by 33.3% year-on-year, attributed to the rise in sales of products packaged in plastic bowls and cups[31]. - The company has implemented monthly and annual assessments of material consumption standards to reduce waste, linking performance directly to employee compensation[30]. Market Strategy and Growth - The company aims to expand its distribution network by entering new sales channels such as snack brand stores, convenience stores, and gas stations, resulting in significant sales increases from these new outlets[43]. - The group continues to collaborate with new retailers such as Alibaba, JD.com, and Pinduoduo to develop new retail channels, aiming for future profitability growth[77]. - The group is focusing on expanding its market presence in first- and second-tier cities through e-commerce and convenience stores, promoting products like "Coffee Circle" and "Chocolate Circle"[56]. - The group plans to continue developing new snack products, including candies, chocolates, and baked goods, focusing on health-conscious options to meet changing consumer preferences[55]. - The group adjusted its e-commerce strategy to reduce sales of low-margin products and increase the proportion of high-margin self-produced products, improving overall gross margin and net profit margin[77]. Corporate Governance - The company emphasizes the importance of high standards of corporate governance to manage business risks and enhance transparency[102]. - The board of directors is responsible for overall management, including business strategy, internal controls, and risk management[107]. - The company has adopted a corporate governance policy in accordance with the Hong Kong Stock Exchange's rules, ensuring compliance with all governance code provisions for the year ending December 31, 2023[124]. - The company has established a risk management framework to ensure that relevant risks are effectively controlled within the group's risk appetite[170]. - The board consists of 11 members, including four independent non-executive directors, contributing to rigorous oversight and monitoring of management procedures[152]. - The company has established a mechanism for directors to seek independent professional advice to ensure strong board independence[132]. - The company has a shareholder communication policy to ensure timely and equal access to information for shareholders and potential investors[178]. Employee and Workplace Management - The company experienced a 61% employee turnover rate at the end of the reporting period, indicating potential challenges in workforce stability[17]. - The company focuses on employee development, workplace safety, and sustainable practices to attract and retain talent[103]. - The group has approximately 2,500 employees as of December 31, 2023, down from 2,600 in 2022, with total employee benefits expenses around RMB 209.0 million[85]. Dividend and Capital Expenditure - The board does not recommend the declaration of a final dividend for the year ended December 31, 2023, consistent with the previous year[62]. - The total capital expenditure for new production facilities and improvements to existing facilities during the reporting period was approximately RMB 63.2 million[78]. - The group’s capital expenditure for 2023 was RMB 63.2 million, down from RMB 274.7 million in 2022, primarily for new production facilities and equipment in China[82].

Financial Performance - Revenue for the fiscal year ended December 31, 2023, was RMB 981,574,000, representing a 2.5% increase from RMB 957,569,000 in 2022[3] - Gross profit for the same period was RMB 258,859,000, up 4.7% from RMB 247,317,000 in the previous year[3] - The gross margin improved to 26.4%, an increase of 0.6 percentage points from 25.8% in 2022[3] - The company reported a loss attributable to shareholders of RMB 2,002,000, compared to a loss of RMB 1,387,000 in the previous year, reflecting a 44.3% increase in losses[3] - The company reported a net loss of RMB 2,056 thousand for the year ended December 31, 2023[29] - The group recorded a consolidated net loss attributable to shareholders of approximately RMB 2.0 million, compared to a net loss of RMB 1.4 million in the previous year, representing an increase in net loss of RMB 0.6 million[85] Cash and Assets - The net cash position decreased by 16.7% to RMB 228,442,000 from RMB 274,115,000 year-over-year[3] - Total assets as of December 31, 2023, were RMB 1,964,073,000, down 4.5% from RMB 2,056,733,000 in 2022[3] - The company’s net current assets increased by 68.2% to RMB 153,485,000 from RMB 91,240,000 in the previous year[3] - The company reported a net cash position of RMB 520.7 million as of December 31, 2023, an increase from RMB 502.1 million in 2022[118] Liabilities - The total liabilities decreased from RMB 822,035 thousand in 2022 to RMB 762,735 thousand in 2023, representing a reduction of approximately 7.2%[14] - Non-current liabilities increased from RMB 195,175 thousand in 2022 to RMB 228,151 thousand in 2023, an increase of approximately 16.9%[14] - Current liabilities decreased from RMB 626,860 thousand in 2022 to RMB 534,584 thousand in 2023, a decrease of approximately 14.7%[14] - The total borrowings amounted to RMB 292.3 million as of December 31, 2023, an increase from RMB 228.0 million in 2022[80] Expenses and Costs - Total expenses for the year 2023 amounted to RMB 983,197 thousand, compared to RMB 972,498 thousand in 2022, reflecting an increase in costs[38] - The company reported a significant increase in depreciation and amortization expenses, totaling RMB 75,609 thousand in 2023 compared to RMB 63,651 thousand in 2022[38] - Employee benefits expenses totaled approximately RMB 209.0 million for the year, a decrease from RMB 214.0 million in 2022, due to cost control measures implemented by the group[131] Revenue Breakdown - Total revenue for the year ended December 31, 2023, was RMB 981,574 thousand, with jelly products contributing RMB 567,185 thousand, puffed food RMB 274,205 thousand, seasoning products RMB 78,859 thousand, and candy and other products RMB 61,325 thousand[29] - The group's sales revenue for jelly products was approximately RMB 567.2 million, a year-on-year increase of about 0.4%, accounting for 57.8% of total revenue[90] - The sales revenue for puffed products was approximately RMB 274.2 million, a year-on-year increase of about 3.4%, accounting for 27.9% of total revenue[88] - The sales revenue for seasoning products was approximately RMB 78.9 million, a year-on-year increase of about 7.2%, accounting for 8.0% of total revenue[93] - The sales revenue for candy and other products was approximately RMB 61.3 million, a year-on-year increase of about 13.5%, accounting for 6.2% of total revenue[94] Governance and Management - The company plans to maintain high standards of corporate governance to manage business risks and enhance transparency[41] - The board consists of 11 members, including 3 executive directors and 4 independent non-executive directors[139] - The chairman and executive director is Mr. Xu Qingliu[139] - The financial director and company secretary is Mr. Huang Weiliang[139] - The CEO is Mr. Wu Wenxu[139] Future Plans and Strategies - The company plans to continue evaluating the impact of new accounting standards and expects no significant impact on financial performance upon their implementation[27] - The group plans to continue expanding sales channels and developing higher-margin new products to enhance overall product sales and profitability[85] - The company aims to enhance its product diversity and market share by launching new flavor products, targeting both the restaurant and household markets[103] - The company plans to continue developing new snack products, including healthier options, to meet consumer demand for health-conscious eating[103] Miscellaneous - The company did not recommend a final dividend for the year ending December 31, 2023, consistent with no dividend in 2022[56] - The company incurred a loss of RMB 8,616,000 related to the deemed disposal of an associate, reflecting a significant impact on its financial position[66] - The group had no significant contingent liabilities as of December 31, 2023, and no major acquisitions or disposals of subsidiaries, associates, or joint ventures during the year[125]