Investment Rating - The report maintains an "Accumulate" rating for the company [1][3]. Core Views - The current consumer environment is weak, putting pressure on the company's same-store sales and expansion efforts, with expectations for stabilization and recovery [2]. - The forecast for adjusted net profit for 2024-2026 has been revised down to RMB 198 million, RMB 286 million, and RMB 358 million, reflecting a growth rate of -45%, 44.5%, and 25% respectively [3]. - The company is expected to experience a double-digit decline in same-store sales in H1 due to a weak external consumption environment, with store numbers remaining stable compared to the previous year [3]. - The company has launched the first industry standard for "Fresh Cut Fruit Raw Materials" to enhance brand effect and fulfill social responsibility [3]. - A long-term perspective indicates that organizational structure optimization and clear strategic direction are expected to lay a foundation for sustainable development [3]. Summary by Sections Financial Summary - Revenue for 2024 is projected at RMB 10,124 million, with a year-on-year decline of 11.1% [6]. - Adjusted net profit for 2024 is expected to be RMB 198 million, down 45.3% from the previous year [6]. - The company’s PE ratio is projected to decrease from 26.51 in 2024 to 8.29 in 2026, indicating a potential increase in value [6]. Market Data - The current stock price is HKD 1.87, with a 52-week price range of HKD 1.87 to HKD 6.56 [4]. - The current market capitalization is HKD 2,971 million [4].

Store Expansion and Retail Network - The company's total number of stores reached 6,093 in 2023, with a net increase of 443 stores, covering more than 170 cities in 22 provinces and municipalities[5] - The company's retail network includes self-operated APP, WeChat Mini-program, and third-party platforms like Douyin, Meituan, and Ele.me[5] - The company's retail business unit expanded its store network by 443 stores, reaching a total of 6,093 stores across more than 170 cities in 22 provinces and municipalities[36][37] - Total number of retail stores increased by 7.8% to 6,093 as of December 31, 2023, compared to 5,650 in 2022[54][55] - Revenue from franchised stores supervised by the Group accounted for 99.4% of total revenue, amounting to RMB 8,495,143 thousand in 2023[58] - The Group established a franchisee committee and organized six exchange and learning activities in 2023 to enhance franchisee satisfaction[59] - Revenue from franchised stores decreased by 4.0% from RMB8,851.5 million in 2022 to RMB8,499.8 million in 2023, despite a 5.3% increase in the number of stores to 4,818[92][94] - Average annual revenue per franchised store decreased by 9.8% from RMB2.0 million in 2022 to RMB1.8 million in 2023[94][96] Online Sales and Digital Channels - Online orders accounted for approximately 27.6% of total sales in 2023[5] - Cumulative number of users of the WeChat mini-program reached 68 million, a 26% increase compared to 2022[60] - Total number of store-based WeChat groups increased to 27,455 with over 16.2 million followers, a 25.6% year-on-year increase[60] - Orders placed through online channels accounted for 27.6% of total orders in 2023[60] - Total number of customers purchasing through Douyin increased by 190% in 2023 compared to 2022[62] - Retail sales of fruits and fruit products through Douyin ranked first among all fruits and fruit products traded on the platform in 2023[62] - The Group's Tasty Fruit Festival in October 2023 attracted over 120 million online views and trended nationally on Weibo[62] Business Unit Performance - The 2B business unit grew by approximately 42.5% year-on-year in 2023[6] - The 2B business unit achieved a year-on-year revenue growth rate of 42.5% in 2023[38] - Revenue from direct sales (2B business) increased by 42.5% from RMB723.8 million in 2022 to RMB1,031.5 million in 2023[92] - Overseas 2B sales grew by 62.0% from RMB154.4 million in 2022 to RMB250.0 million in 2023, driven by increased demand for quality fruits[92][93] - Domestic 2B sales increased by 37.2% from RMB569.4 million in 2022 to RMB781.5 million in 2023, due to favorable pricing strategies[92][93] - The company restructured into three business units: retail, 2B, and category business units to align with long-term growth goals[48] Financial Performance - Revenue for the year ended December 31, 2023 was RMB11,390.6 million, an increase of 0.7% compared to 2022[32][33] - Gross profit for 2023 was RMB1,314.8 million, a slight increase of 0.04% compared to 2022[32][33] - Profit attributable to owners of the company for 2023 was RMB361.7 million, an increase of 11.9% compared to 2022[32][33] - The company's revenue increased by 0.7% from RMB 11,312.0 million in 2022 to RMB 11,390.6 million in 2023[47] - The company's gross profit slightly increased by 0.04% from RMB 1,314.3 million in 2022 to RMB 1,314.8 million in 2023[47] - The company's profit attributable to owners increased by 11.9% from RMB 323.3 million in 2022 to RMB 361.7 million in 2023[47] - Total revenue increased by 0.7% from RMB11,312.0 million in 2022 to RMB11,390.6 million in 2023[88] - Revenue from sales of fruits and other food products accounted for 97.2% of total revenue in 2023, up from 97.1% in 2022[88] - Direct sales revenue increased by 42.5% from RMB723.8 million in 2022 to RMB1,031.5 million in 2023[91] - Franchised stores revenue decreased by 4.0% from RMB8,851.5 million in 2022 to RMB8,499.8 million in 2023[91] - Operating profit increased from RMB384.998 million in 2022 to RMB416.612 million in 2023[85] - Net profit attributable to owners of the Company rose from RMB323.297 million in 2022 to RMB361.717 million in 2023[85] - Revenue from regional dealers increased by 15.4% from RMB1,072.740 million in 2022 to RMB1,238.641 million in 2023[91] - Royalty and franchising income decreased from RMB168.844 million in 2022 to RMB144.582 million in 2023[88] - Membership income increased from RMB90.132 million in 2022 to RMB95.345 million in 2023[88] - Gross profit margin slightly decreased from 11.6% in 2022 to 11.5% in 2023, with gross profit increasing by only 0.04% to RMB1,314.8 million[96][98] - Other income decreased by 9.8% from RMB40.8 million in 2022 to RMB36.8 million in 2023, mainly due to reduced government grants and franchisee penalty income[99][100] - Net other gains increased by 16.7% from RMB25.4 million in 2022 to RMB29.6 million in 2023, driven by foreign exchange gains from overseas direct sales[101][103] - Selling expenses decreased by 3.4% to RMB482.0 million in 2023, partly due to a 4.7% reduction in transportation costs to RMB204.6 million[102][104] - Administrative expenses decreased by 2.5% to RMB313.5 million in 2023, as administrative staff headcount reduced from 538 to 525[105][107] - Net impairment losses on financial assets increased from RMB2.2 million in 2022 to RMB23.5 million in 2023, primarily due to defaults and insolvency of 2B business customers[108] - Research and development expenses decreased by 15.8% from RMB173.0 million in 2022 to RMB145.6 million in 2023, driven by a reduction in R&D staff from 491 to 361[109][110] - Finance income increased by 28.7% from RMB31.8 million in 2022 to RMB40.9 million in 2023, mainly due to higher interest income from bank deposits[111][113] - Finance costs decreased by 9.5% from RMB83.7 million in 2022 to RMB75.8 million in 2023, primarily due to lower interest expenses on bank borrowings and lease liabilities[111][113] - Share of losses from associates and joint ventures was RMB0.7 million in 2023, compared to a profit of RMB13.3 million in 2022, mainly due to losses in avocado and pitaya cultivation ventures[112][114] - Profit before income tax increased by 10.0% from RMB346.4 million in 2022 to RMB381.0 million in 2023[115][118] - Income tax expense increased by 2.0% from RMB40.2 million in 2022 to RMB41.0 million in 2023, driven by higher taxable income[116][119] - Net profit increased by 11.1% from RMB306.1 million in 2022 to RMB340.0 million in 2023, with net profit margin rising from 2.71% to 2.98%[117][120] - Adjusted net profit and adjusted net profit margin are presented as non-HKFRS measures, excluding listing expenses related to the Group's global offering and listing in January 2023[121] - The Group uses non-HKFRS measures to evaluate financial performance by excluding non-recurring items, though these measures have limitations and should not replace HKFRS-based analysis[122][123] - Net profit for the year 2023 was RMB 339,992 thousand, an increase from RMB 306,137 thousand in 2022[126] - Adjusted net profit for 2023 was RMB 342,184 thousand, with an adjusted net profit margin of 3.00%, compared to 2.99% in 2022[126] Supply Chain and Logistics - The company operates 29 warehouses and distribution centers, supporting its expansion into new cities[5] - The company gained control over Shenzhen Banguo in 2023, enhancing supply chain advantages and expanding market share[6] - In November 2023, the company gained control over Shenzhen Banguo to expand its B2B integrated procurement service platform[38] - The Group operates 29 warehouses across China, with a total floor area of over 207,000 sq.m., including 16 self-operated preliminary processing and distribution centers[72] - Transportation costs decreased by approximately 4.7% in 2023 compared to 2022 due to the upgraded transportation management system (TMS)[73] - The purchase amount from suppliers provided with agricultural technology and related services increased from 35.0% in 2022 to 41.0% in 2023[73] - The Group completed the construction of 16 warehouses in 16 production areas, covering 10 types of fruits across 11 provinces and cities in China[73] - The Group will upgrade its warehousing and transportation management systems to improve efficiency and reduce costs[79][81] - The Group will continue to expand and upgrade its network of preliminary processing and distribution centers to support the growth of its 2B fruit business and fresh grocery business[79][81] Product Development and Branding - The company successfully introduced 37 category brands to the market by the end of 2023, accounting for approximately 14% of total retail sales[9] - The company has developed 37 product brands, with Excellent products contributing approximately 14% of the total retail volume of its stores[39] - The Group introduced six new Excellent fruit product brands in 2023, bringing the total to 37 self-owned product brands, which accounted for 14.0% of total store retail sales[69][70] - Sales of Fruit Corn increased by 3,076% and Golden Venus Apple sales grew by 515% in 2023 compared to 2022[71] - Aggregate sales of fruits under Excellent and Grade A categories accounted for 66.5% of the total store retail sales of Pagoda stores in 2023[66][68] Strategic Goals and Future Plans - The company's strategy focuses on becoming an expert and leader in the high-quality fruit industry[10] - The company's vision is to become a world-leading fruit eco-technology company[11] - The company's mission is to offer delicious fruits and an enjoyable lifestyle to people[12] - The company plans to focus on enhancing store profitability and expanding the "healthy fruit gift" market in 2024[40][42] - The company aims to improve supply chain efficiency and market share through synergy with Shenzhen Banguo[40][42] - The Group aims to improve retail store profitability by increasing the sales proportion of Excellent fruits and creating high-quality fruit gift boxes[75][77] - The Group plans to expand its OMO distribution network by penetrating low-tier cities and expanding stores in existing cities[75][77] - The Group will strengthen its 2B business by developing customized fruit gift boxes and expanding its 2B customer base through omni-channel strategies[78][80] - The Group plans to invest in IT research and development, leveraging AI and deep learning to improve data processing and management capabilities[83] Subsidiaries and Corporate Structure - Baiguo Digital Industrial Park Co., Ltd. is a wholly-owned subsidiary established in the PRC on March 12, 2020[22] - Baiguo Technology (Shenzhen) Co., Ltd. is a wholly-owned subsidiary established in the PRC on November 18, 2014[23] - Baihui Life Technology Co., Ltd. is a wholly-owned subsidiary established in the PRC on November 16, 2020[23] - Baixin Investment Development Co., Ltd. is a wholly-owned subsidiary established in the PRC on September 10, 2021[23] - Beijing Aoxiang Technology Co., Ltd. is a wholly-owned subsidiary established in the PRC on August 20, 2013[23] - Hainan Pagoda Supply Chain Management Service Co., Ltd. established on September 18, 2020, as a wholly-owned subsidiary[25] - Shenzhen Jinnong Supply Chain Management Co., Ltd. established on May 12, 2021, with 75% ownership by Pagoda Investment and 25% by an independent third party[26] - Shenzhen Pagoda Brand Management Co., Ltd. established on January 18, 2019, as a wholly-owned subsidiary[26] - Jiangxi Wangpin Agricultural Technology Development Co., Ltd. established on May 13, 2003, as a wholly-owned subsidiary[25] - Shenzhen Hengyili Investment Development Center Limited Partnership established on December 1, 2015, as an employee shareholding platform and controlling shareholder[25] - Shenzhen Hongyuan Shanguo Investment Development Limited Partnership established on April 13, 2015, as an employee shareholding platform and controlling shareholder[24] - Hainan Tiantu Xingzhou Venture Capital Partnership established on September 14, 2021, as a connected person of the company[24] - Shenzhen Guodao Yunxin Education Consulting Co., Ltd. established on May 24, 2017, as a connected person of the company[24] - Pagoda Seeds is a non-wholly owned subsidiary, with 60.24% ownership by Pagoda Investment, 5.48% by Youguolian, and 34.28% by Guangxi Zhencheng Agriculture Co., Ltd.[27] - Shenzhen Banguo is a non-wholly owned subsidiary, with 51.00% ownership by Pagoda Investment, 15.00% by Mr. XU Yusheng, 23.93% by Ms. WU Weixin, and 10.07% by Beijing Banguo Yuhuoban Technology Development Center[28] - Shenzhen Sangeling is a non-wholly owned subsidiary, indirectly controlled by the Company (56.53%), Zhixin Bainong (25.44%), and Hainan Tiantu (18.03%)[29] - Shenzhen Youxian is a non-wholly owned subsidiary, with 65% ownership by Baiguo Technology and 35% by Tanlian Information Technology (Beijing) Co., Ltd.[29] Market and Industry Trends - China's total fruit imports reached US$18,340 million in 2023, a year-on-year increase of 16.3%[46] - Fresh durian imports in China grew significantly, reaching US$6,720 million in 2023, a year-on-year increase of 66.0%[46] Corporate Governance and Leadership - The company's 2023 Share Award Scheme was approved by shareholders at the first extraordinary general meeting held on September 28, 2023[22] - The Annual General Meeting (AGM) is scheduled to be held on Thursday, June 6, 2024[22] - Mr. TIAN Xiqiu, aged 50, is an executive Director and vice-chairman, responsible for assisting in formulating the overall development strategies of the company[169] - Mr. JIAO Yue, aged 37, is an executive Director and executive deputy general manager, overseeing the day-to-day business operation of the company[169] - Mr. ZHU Qidong, aged 49, is an executive Director and deputy general manager, responsible for overseeing the procurement, wholesale, and sales of the company[170] - Mr. ZHU Qidong has been an executive director of several subsidiaries, including Pagoda Investment, Pagoda Supply Chain, and Shenzhen Yimiaotong since August 2019[171] - Mr. ZHU Qidong has been the chairman of the board of Pagoda Seeds and Jinnong Supply Chain since July 2020 and May 2021, respectively[171] - Mr. ZHU Qidong has been a director of Hainan Shengjie Agricultural Development Co., Ltd. since October 2019, a company engaged in the production, sales, and transportation of agricultural products[172] - Mr. ZHU Qidong attended courses in business administration at Peking University from April 2016 to July 2018[172] - Dr. JIANG Yanbo, aged 57, is an independent non-executive director, responsible for providing independent opinions on the company's operations and management[173] - Dr. Jiang Yanbo has been an independent non-executive director of BYD Company Limited from September 2020 to September 2023, a company engaged in rechargeable batteries and photovoltaic business[176] - Dr. Jiang Yanbo has been serving as an independent non-executive director of Mubang High-tech Co., Ltd. since November 2021, a company listed on the Shanghai Stock Exchange (stock code: 603398)[175] - Dr. Jiang Yanbo has been an independent non-executive director of Shenzhen Minkave Technology Co., Ltd. since September 2021, a company listed on the Shenzhen Stock Exchange (stock code: 300506)[175] - Dr. Jiang Yanbo has been an independent director of Guangdong Yingde Rural Commercial Bank Company Limited since April 2023[175] - Dr. Jiang Yanbo was an independent non-executive director of Guangdong Dowstone Technology Co., Ltd. from April 2017 to April 2023, a technology company listed on the Shenzhen Stock Exchange[176] - Dr. Jiang Yanbo served as an independent non-executive director of Kangda New Materials (Group) Co.,

Investment Rating - The investment rating for the company is "Buy" (maintained) [2] Core Viewpoints - The company reported a revenue of 11.391 billion yuan in 2023, a year-on-year increase of 0.7%, and a net profit of 362 million yuan, up 11.9% year-on-year. The profit forecasts for 2024-2026 have been adjusted downwards due to investments in brand renewal, with expected net profits of 344 million yuan, 415 million yuan, and 516 million yuan respectively [2][3] - The company is transitioning to a high-quality growth strategy in 2024, focusing on enhancing brand image, expanding 2B distribution channels, and optimizing the supply chain [4] Summary by Relevant Sections Business Performance - In 2023, the company opened 443 new stores, ending the year with a total of 6093 stores. The OMO model continues to develop, with a total membership of 83.91 million (up 13% year-on-year) and 1.17 million paid members (up 21% year-on-year). Online channels accounted for approximately 27.6% of total orders [3] - The company's gross margin for 2023 was 11.5%, with expense ratios for sales, management, R&D, and finance at 4.2%, 2.8%, 1.3%, and 0.1% respectively [3] Strategic Initiatives - The company has restructured its operations into three business groups: Retail, 2B, and Category, to better align with long-term growth goals and improve efficiency [3] - The 2B business group achieved a transaction volume of 3.068 billion yuan in 2023, with expectations for enhanced synergy and market share expansion [3] Financial Projections - Revenue projections for 2024-2026 are 12.323 billion yuan, 13.464 billion yuan, and 14.613 billion yuan, representing year-on-year growth rates of 8.2%, 9.3%, and 8.5% respectively [5] - The expected EPS for 2024-2026 is 0.22 yuan, 0.26 yuan, and 0.32 yuan, with corresponding P/E ratios of 13.8, 11.4, and 9.2 [5][6]

Investment Rating - The investment rating for the company is "Buy" based on its strong market position and growth potential in the fruit retail sector [1]. Core Viewpoints - The company reported a revenue of 11.39 billion yuan for 2023, reflecting a year-on-year increase of 0.7%, and a net profit attributable to shareholders of 362 million yuan, up 11.9% year-on-year [1]. - The company aims to become a high-quality fruit expert and leader, focusing on brand advantages and quality selection [1]. - The company has expanded its store count to 6,093 by the end of 2023, an increase of 443 stores from the previous year, with a significant portion being franchise stores [1]. - Membership numbers reached 83.91 million, with 1.17 million paying members, indicating strong customer engagement [1]. - The company has increased its proprietary brand count from 31 to 37, with proprietary brand fruit sales accounting for 14% of total sales [1]. Business Performance Summary - The fruit and other food sales contributed over 97% of total revenue, benefiting from growth in both domestic and international B2B markets [1]. - In the second half of 2023, revenue from fruit and other food sales was 4.96 billion yuan, down 5.6% year-on-year [1]. - Franchise store revenue was 8.5 billion yuan, down 4%, primarily due to weakened consumer spending [1]. - Direct sales revenue grew by 42.5% to 1.032 billion yuan, with overseas direct sales contributing 250 million yuan [1]. - The online channel accounted for approximately 27.6% of total orders, with significant growth in sales through Douyin [1]. Strategic Direction - The company has updated its strategic direction to focus on becoming a high-quality fruit expert and leader, with plans for store renovations and enhancing sales of signature fruits [1]. - The company aims to increase its market share in the fruit sector through its strong planting and supply chain capabilities [1]. - The expected net profits for 2024 and 2025 are projected to be 368 million yuan and 450 million yuan, respectively, with corresponding price-to-earnings ratios of 13.04 and 10.67 [1].

Revenue and Profit Performance - Revenue for 2023 was RMB 11,390.6 million, a slight increase of 0.7% compared to RMB 11,312.0 million in 2022[2] - Net profit attributable to owners of the company increased by 11.9% to RMB 361.7 million in 2023 from RMB 323.3 million in 2022[2] - Total revenue increased by 0.7% from RMB 11,312.0 million in 2022 to RMB 11,390.6 million in 2023, with fruit and other food sales accounting for 97.2% of total revenue[25] - Net profit increased by 11.1% from RMB 306.1 million in 2022 to RMB 340.0 million in 2023, with the net profit margin rising from 2.71% to 2.98%[43] - Adjusted net profit (non-HKFRS measure) for 2023 was RMB 342.2 million, with an adjusted net profit margin of 3.00%[45] - Revenue for 2023 was RMB 11,390.6 million, an increase from RMB 11,312.0 million in 2022[65] - Net profit attributable to the company's owners for 2023 was RMB 361.7 million, up from RMB 323.3 million in 2022[65] - Total revenue for 2023 reached RMB 11,390,555 thousand, a slight increase from RMB 11,311,995 thousand in 2022[77] - Net profit attributable to the company's owners for 2023 was RMB 361,717 thousand, up from RMB 323,297 thousand in 2022[86] Retail and Franchise Operations - Total retail sales for 2023 were RMB 14,171.3 million, a decrease from RMB 14,580.7 million in 2022[5] - The company's total number of stores increased to 6,093 in 2023, with a net addition of 443 stores compared to 2022[4][10] - Fruit and food sales accounted for 97.2% of total revenue in 2023, with franchise stores contributing 74.62% of total revenue[2][3] - Total retail stores increased by 7.8% to 6,093 as of December 31, 2023, compared to 5,650 in 2022, driven by the company's strategy to expand and develop its retail store network[11] - Revenue from franchise stores accounted for 99.4% of total product sales revenue in 2023, amounting to RMB 8,499.789 million, slightly down from 99.3% in 2022[12] - Revenue from franchised stores decreased by 4.0% from RMB 8,851.5 million in 2022 to RMB 8,499.8 million in 2023, despite a 5.3% increase in the number of franchised stores to 4,818[30] Overseas and Direct Sales - Overseas direct sales grew significantly to RMB 250.0 million in 2023, up from RMB 154.4 million in 2022[5] - Revenue from direct sales of fruits and other food products increased by 42.5% to RMB 1,031.5 million in 2023, with overseas market sales growing by 62.0% year-on-year[16] - Direct sales revenue grew by 42.5% from RMB 723.8 million in 2022 to RMB 1,031.5 million in 2023, driven by growth in both overseas and domestic markets[28][29] - Revenue from overseas 2B customers increased by 62.0% from RMB 154.4 million in 2022 to RMB 250.0 million in 2023, while domestic 2B revenue grew by 37.2% from RMB 569.4 million to RMB 781.5 million[29] - Revenue from Indonesia saw significant growth, increasing to RMB 92,380 thousand in 2023 from RMB 52,272 thousand in 2022[77] - Revenue from Singapore more than doubled to RMB 62,498 thousand in 2023 from RMB 29,736 thousand in 2022[77] Membership and Online Sales - Membership increased to 83,905 thousand in 2023, compared to 74,029 thousand in 2022[5] - The company's membership base exceeded 83 million, with paid members reaching 1,170 thousand, and WeChat mini-program users grew by 26% to 68 million by the end of 2023[14] - Online orders accounted for 27.6% of total orders in 2023, with the number of WeChat store groups increasing to 27,455 and WeChat fan group followers surpassing 16.2 million, a 25.6% year-on-year growth[14] - The company's content on platforms like Douyin and Weibo during the 2023 Delicious Fruit Festival garnered over 120 million views, and Douyin channel sales increased by 190% compared to 2022[15] Product and Brand Performance - Signature and Grade A fruits accounted for 66.5% of the total retail sales in Baiguoyuan stores as of December 31, 2023[17] - The company launched 6 new signature fruit brands in 2023, bringing the total to 37, with all self-owned brand fruits contributing 14.0% to the total retail sales in Baiguoyuan stores[17] - Sales of fruit corn increased by 3,076% and Golden Venus apples by 515% in 2023 compared to 2022[17] Supply Chain and Logistics - The company operates 29 warehouses across China with a total area exceeding 207,000 square meters, of which 16 are self-operated and 13 are managed by regional agents[18] - Transportation costs decreased by 4.7% in 2023 due to the upgraded Transportation Management System (TMS)[18] - The proportion of fruit procurement from suppliers receiving agricultural technology and related services increased from 35.0% in 2022 to 41.0% in 2023[18] - The company completed the construction of 16 origin warehouses in collaboration with 16 suppliers, covering 10 types of fruits across 11 provinces[18] - Inventory turnover days increased slightly from 10.7 days in 2022 to 12 days in 2023, mainly due to increased overseas direct sales of fruits with longer storage periods such as apples[61] - Trade receivables turnover days decreased from 36.7 days in 2022 to 35 days in 2023, primarily due to proactive collection efforts by the company[61] Financial Position and Cash Flow - Cash and bank balances increased from RMB 1,776.2 million in 2022 to RMB 2,537.1 million in 2023, including unrestricted cash and cash equivalents of RMB 2,224.8 million[48] - Net assets increased from RMB 3,019.5 million in 2022 to RMB 3,337.1 million in 2023, with current assets of RMB 5,265.8 million and current liabilities of RMB 3,517.6 million[47] - Net proceeds from the global offering amounted to HKD 474.0 million, with HKD 229.5 million (48.4%) allocated for improving and upgrading operational and supply chain systems[51] - The company's debt-to-asset ratio increased from 44.2% at the end of 2022 to 56.8% at the end of 2023, primarily due to increased bank borrowings[54] - As of December 31, 2023, the company had non-current bank borrowings of RMB 126.3 million and short-term bank borrowings of RMB 1,768.9 million[54] - Net cash used in operating activities for the year ended December 31, 2023, was RMB 48.5 million, compared to net cash generated from operating activities of RMB 589.2 million in the previous year[55] - Net cash generated from financing activities for the year ended December 31, 2023, was RMB 414.9 million, driven by net proceeds from bank borrowings of RMB 560.3 million and IPO proceeds of RMB 426.8 million[56] - The company held RMB 180.4 million in structured deposits (classified as financial assets at fair value through profit or loss) as of December 31, 2023[57] - Capital expenditures for the year ended December 31, 2023, amounted to RMB 112.6 million, primarily for the construction of a new office building in Shenzhen[58] - Total assets increased to RMB 7,590,985 thousand in 2023, up from RMB 6,809,741 thousand in 2022, reflecting a growth of 11.5%[67] - Property, plant, and equipment rose to RMB 521,842 thousand in 2023, a 15.9% increase compared to RMB 450,153 thousand in 2022[67] - Cash and cash equivalents surged to RMB 2,114,823 thousand in 2023, a significant 44.3% increase from RMB 1,465,908 thousand in 2022[67] - Total liabilities grew to RMB 4,253,889 thousand in 2023, up 12.2% from RMB 3,790,250 thousand in 2022[68] - Bank borrowings under current liabilities increased to RMB 1,768,876 thousand in 2023, a 43.7% rise compared to RMB 1,231,191 thousand in 2022[68] - Net assets expanded to RMB 3,337,096 thousand in 2023, up 10.5% from RMB 3,019,491 thousand in 2022[68] - Equity attributable to owners of the company increased to RMB 3,224,972 thousand in 2023, a 9.1% growth from RMB 2,954,686 thousand in 2022[68] - Non-current assets grew to RMB 2,325,137 thousand in 2023, up 11.8% from RMB 2,080,119 thousand in 2022[67] - Trade receivables decreased to RMB 1,063,440 thousand in 2023, down 4.9% from RMB 1,118,438 thousand in 2022[67] - Long-term bank deposits increased significantly to RMB 110,000 thousand in 2023, up 450% from RMB 20,000 thousand in 2022[67] - Trade receivables decreased to RMB 1,063,440 thousand in 2023 from RMB 1,118,438 thousand in 2022, with a provision for impairment of RMB 53,824 thousand[88] - Trade receivables aged 0-90 days accounted for RMB 765,132 thousand in 2023, down from RMB 803,891 thousand in 2022[88] - Trade payables decreased to RMB 364,158 thousand in 2023 from RMB 509,916 thousand in 2022, with the majority aged 0-30 days[90] Strategic Initiatives and Business Restructuring - The company strategically restructured into three business groups: Retail, 2B, and Category, to enhance operational efficiency and explore new revenue sources[9] - The company completed its global offering and H-share listing on the Hong Kong Stock Exchange in January 2023, marking a significant milestone[9] - The company plans to enhance retail store profitability and expand the OMO distribution network in 2024[20] - The company aims to strengthen its 2B business by deepening cooperation with existing clients and expanding the 2B customer base[21] - The company will continue to invest in information technology to accelerate digital transformation across the entire supply chain[23] - The company completed a global offering and listing in Q1 2023, raising net proceeds of approximately HKD 474.0 million[46] Expenses and Costs - Gross profit slightly increased by 0.04% from RMB 1,314.3 million in 2022 to RMB 1,314.8 million in 2023, with gross margin decreasing from 11.6% to 11.5%[32] - Other income decreased by 9.8% from RMB 40.8 million in 2022 to RMB 36.8 million in 2023, mainly due to reduced government subsidies and franchisee penalty income[33] - Net other gains increased by 16.7% from RMB 25.4 million in 2022 to RMB 29.6 million in 2023, primarily due to foreign exchange gains from overseas direct sales[34] - Selling expenses decreased by 3.4% from RMB 498.8 million in 2022 to RMB 482.0 million in 2023, driven by reduced transportation costs and a decrease in sales and marketing staff[35] - Management expenses decreased by 2.5% from RMB 321.6 million in 2022 to RMB 313.5 million in 2023, primarily due to a reduction in the number of management personnel from 538 to 525[36] - Financial asset impairment loss provisions increased from RMB 2.2 million in 2022 to RMB 23.5 million in 2023, mainly due to increased trade receivables aged over one year and defaults by some 2B enterprise clients[37] - R&D expenses decreased by 15.8% from RMB 173.0 million in 2022 to RMB 145.6 million in 2023, driven by a reduction in R&D personnel from 491 to 361[38] - Financial income increased by 28.7% from RMB 31.8 million in 2022 to RMB 40.9 million in 2023, mainly due to higher interest income from bank deposits[39] - Profit before tax increased by 10.0% from RMB 346.4 million in 2022 to RMB 381.0 million in 2023[41] - Depreciation and amortization expenses decreased to RMB 127,324 thousand in 2023 from RMB 128,358 thousand in 2022[75][76] - Financial costs net of income decreased to RMB 34,902 thousand in 2023 from RMB 51,968 thousand in 2022[83] - Income tax expense for 2023 was RMB 41,041 thousand, slightly higher than RMB 40,225 thousand in 2022[84] Dividends and Shareholder Returns - The company proposed a final dividend of RMB 0.043 per share for 2023, totaling approximately RMB 68.3 million[6] - The company proposed a final dividend of RMB 0.043 per share for 2023, totaling approximately RMB 68,307 thousand, subject to shareholder approval[91] - The final dividend will be paid in RMB for non-listed shareholders and in HKD for H-shareholders, with a 10% withholding tax for non-resident enterprise shareholders[92] Legal and Compliance - The company had no contingent liabilities, guarantees, or litigation as of December 31, 2023[59] - The company's subsidiary, Guangdong Baiguoyuan Agricultural Products Primary Processing Co., Ltd., won a lawsuit against a domestic bank for a financial contract dispute involving RMB 20.0 million[97] - The company maintained sufficient public float as required by the listing rules, with at least 25% of the total registered share capital held by the public[96] - The audit committee reviewed the company's accounting principles and financial statements for 2023, confirming compliance with applicable accounting standards[98] - The company's auditor, PricewaterhouseCoopers, confirmed the consistency of the financial data in the announcement with the draft consolidated financial statements for 2023[99] ESG and Corporate Governance - The 2023 Environmental, Social, and Governance (ESG) report will be published on the company and Hong Kong Stock Exchange websites in accordance with listing rules[102] - The board of directors expresses gratitude to shareholders, management team, employees, business partners, and customers for their support and contributions[103] Employee and Supplier Information - The company had a total of 2,637 employees as of December 31, 2023, with 18.7% in marketing, 15.7% in operations and store management, 20.4% in production and logistics, and 13.7% in IT[62] - Total employee benefit expenses for 2023 were RMB 653.2 million, accounting for approximately 5.7% of the company's total revenue for the year[62] - The company's largest supplier accounted for approximately 5.3% of total procurement costs in 2023, while the top five suppliers accounted for 19.0% of total procurement costs[63] - The company's largest customer contributed approximately 1.7% of total revenue in 2023, while the top five customers accounted for 7.4% of total revenue[63] - The company's distributable reserves as of December 31, 2023, were approximately RMB 300.0 million[64] Financial Instruments and Investments - The company subscribed to structured time deposit wealth management products issued by Bank of Communications with a total principal of RMB 350 million, with expected annualized returns of 1.75%, 3.00%, or 3.02% depending on the benchmark price[60] Earnings Per Share - Basic earnings per share increased to RMB 22.97 cents in 2023 from RMB 21.55 cents in 2022[86] - Diluted earnings per share for the year ended December 31, 2023, were the same as basic earnings per share due to no issuance of potentially dilutive ordinary shares[87] Public Information and Reporting - The company's 2023 annual performance announcement and annual report are available on the company's website (www.pagoda.com.cn) and the Hong Kong Stock Exchange website (www.hkexnews.hk)[101]

Company Overview - Shenzhen Pagoda Industrial (Group) Corporation Limited is the largest fruit retail operator in China, focusing on the entire industry chain from cultivation to retail[19]. - The company aims to become the world's largest fruit company in terms of sales volume, service population size, and number of fruit product brands[24]. Business Units and Strategy - The company has established three new business units: retail business unit, business-to-business (2B) business unit, and category business unit to capitalize on major opportunities in the fruit sales industry[20]. - The retail business unit aims to create an integrated online-merge-offline retail network to become the preferred brand for Chinese consumers[114]. - The 2B business unit leverages the Group's supply chain resources to enhance omni-channel capabilities and increase market share[114]. - The category business unit focuses on developing product brands through agricultural technology, brand marketing, and sales management[114]. - The Group's strategy of expanding its retail store network and penetrating lower-tier cities contributed to the recovery of the consumer sector in China[123]. Retail Network and Customer Engagement - The retail network includes franchised stores, self-operated stores, and online channels, providing a comprehensive distribution strategy[21]. - The company has built a nationwide community-based fruit specialty retail network with online and offline integration, enhancing customer convenience[22]. - The company utilizes diverse online channels, including WeChat groups and Douyin, to reach customers and provide flexible shopping options[22]. - As of June 30, 2023, the Group had over 79 million members across all distribution channels, with over 1,141 thousand paying members and 62 million users of the WeChat mini-program[117]. - The number of customers purchasing through Douyin increased by approximately 913%, with total retail sales through Douyin rising by approximately 796% compared to the same period in 2022[118]. Financial Performance - The Group's total revenue increased by approximately 6.4% from RMB5,914.7 million for the six months ended June 30, 2022, to RMB6,294.3 million for the six months ended June 30, 2023[163]. - Revenue from direct sales of fruits and other food products increased by approximately 34.7% from RMB 407.0 million for the six months ended June 30, 2022, to RMB 548.3 million for the six months ended June 30, 2023[122]. - Revenue from sales of fruits and other food products accounted for approximately 97.2% of total revenue for the six months ended June 30, 2023, compared to 96.9% for the same period in 2022[162]. - Profit for the period attributable to owners of the Company increased to RMB260.8 million for the six months ended June 30, 2023, from RMB194.5 million for the same period in 2022, an increase of approximately 34.0%[159]. - The Group's net profit increased by approximately 35.0% from RMB185.6 million for the six months ended June 30, 2022, to RMB250.5 million for the six months ended June 30, 2023[196]. Market Trends and Consumer Behavior - The recovery of the consumer sector in China indicates optimistic consumption demand growth, driven by improved living standards and health expenditures[109]. - Consumers are increasingly making smarter purchasing decisions, prioritizing "delicious," "safe," and "green and healthy" products[110]. - The fresh food industry is highly competitive, requiring enterprises to improve purchase convenience and product cost-effectiveness[110]. - The Group's focus on brand loyalty is essential as consumer recognition of brands continues to increase[110]. Operational Efficiency and Cost Management - The Group intends to upgrade its warehousing and logistics systems to improve efficiency and reduce costs, supporting the growth of its 2B fruit business[154]. - Transportation costs decreased by approximately 8% in the first half of 2023 compared to the same period in 2022[142]. - Selling expenses decreased by approximately 1.7% from RMB246.2 million to RMB242.0 million, attributed to a reduction in sales and marketing staff[180]. - Administrative expenses decreased by approximately 6.6% from RMB157.2 million to RMB146.9 million, mainly due to a decrease in administrative staff and listing expenses[181]. Future Plans and Developments - The Group aims to expand its distribution channels and strengthen its 2B business to increase market share and solidify its market position in the second half of 2023[147]. - The Group plans to penetrate low-tier cities and expand existing stores to achieve deeper consumer reach and cover diverse consumption scenarios[149]. - The Group will enhance its agricultural technology services and incubate more self-branded products to strengthen its competitive advantages in high-quality fruits[153]. - The Group selected 118 suppliers to participate in a new agricultural technology transfer program in the first half of 2023[140]. Challenges and Economic Environment - The macroeconomic environment in China is expected to face challenges such as high inflation and rising operational costs, impacting retail operations[146]. - The Group's taxable income increased due to an increase in the Group's profit before income tax, with some subsidiaries enjoying preferential tax treatments[195].

Group 1 - The company expressed gratitude to investors for attending the presentation and communication session [1] Q&A Session Summary Question: What are the company's future growth prospects? - The company did not provide specific details regarding future growth prospects during the session [1]

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分內容而產生或因依 賴該等內容而引致的任何損失承擔任何責任。 Shenzhen Pagoda Industrial (Group) Corporation Limited 深 圳 百 果 園 實 業（ 集 團 ）股 份 有 限 公 司 （於中華人民共和國註冊成立的股份有限公司） （股份代號：2411） 截至二零二三年六月三十日止六個月 中期業績公告 財務摘要 | --- | --- | --- | --- | |----------------------------------------------|------------------------|------------|----------| | | | | | | | | | | | 下表載列本集團於所示期間的若干關鍵財務資料。 | | | | | | | | | | | 截至六月三十日止六個月 | | | | | 二零二三年 | 二零二二年 | 同比變動 | | | 人民幣千元 | 人民幣千元 | % ...

Company Performance - In 2022, the company achieved steady growth in all performance indicators despite challenges from the pandemic and complex macroeconomic conditions[28]. - For the year ended December 31, 2022, the Group achieved revenue of RMB11,312.0 million, representing an increase of approximately 9.9% over the same period in 2021[30]. - Gross profit for the same period was RMB1,314.3 million, reflecting a 13.6% increase compared to 2021[30]. - Profit attributable to owners of the Company was RMB323.3 million, marking a significant increase of approximately 40.4% year-on-year[30]. - The Group's net cash flow from operating activities increased from RMB283.9 million in 2021 to RMB589.2 million in 2022[30]. - The Group's total revenue increased by approximately 9.9% from RMB 10,289.4 million in 2021 to RMB 11,311.995 million in 2022[94]. - The Group's net profit increased by approximately 38.3% from RMB221.4 million for the year ended December 31, 2021, to RMB306.1 million for the year ended December 31, 2022[124]. - The net profit margin increased from 2.2% for the year ended December 31, 2021, to 2.7% for the year ended December 31, 2022[124]. Business Strategy - The company focuses on a "delicious" business strategy, emphasizing two carriages (channel brands and product brands) and three pillars (IT, capital empowerment, and agricultural technology) for development[28]. - The company aims to become the world's largest fruit company in terms of sales volume, service population size, and number of fruit product brands[10]. - The Group plans to strengthen its "delicious" strategy and expand its distribution network and channel brands in 2023 to enhance market competitiveness[40]. - The Group's mission is to allow more people to enjoy delicious and affordable fruits while promoting fruit knowledge and culture[48]. - The Group plans to continue its business model of offering specialty offline and variety online, focusing on fruit and fruit products offline while expanding fresh grocery products online[70]. Retail Network and Distribution - The company has built a nationwide community-based fruit specialty retail network with OMO and store-as-warehouse features, enhancing flexibility in purchase and delivery options[6]. - The offline store network expanded by 401 stores to a total of 5,650 stores across over 140 cities in 22 provinces and municipalities in China by the end of 2022[32]. - The Group's offline retail stores are strategically located within a 15-minute walk from target consumers, enhancing convenience and personalized service[59]. - The Group's offline stores operate with an efficient store-as-warehouse feature, enabling in-store pickup and home delivery services[60]. - The cumulative number of members across all distribution channels exceeded 74 million, with over 967 thousand paying members[32]. Financial Performance - The Group's revenue from direct sales of fruits and other food products increased by approximately 38.5% from RMB522.8 million in 2021 to RMB723.8 million in 2022[64]. - Revenue from sales of fruits and other food products accounted for 97.1% of total revenue in both 2021 and 2022, amounting to RMB10,981.764 million in 2022[94]. - The number of retail stores increased by 7.6% from 5,249 stores in 2021 to 5,650 stores in 2022, contributing to an 8.9% increase in revenue from franchised stores[97]. - Cost of sales increased by approximately 9.5% from RMB9,132.9 million in 2021 to RMB9,997.7 million in 2022[100]. - Other income rose by approximately 18.1% from RMB34.6 million in 2021 to RMB40.8 million in 2022, primarily due to an increase in government grants[104]. Operational Efficiency - The Group's average monthly repeat purchase rate of self-branded fruits was approximately 50% higher than that of Grade B fruits in 2022[35]. - The Group's purchases from technology-empowered suppliers accounted for 35% of total fruit purchases in 2022, a 5% increase from 2021[36]. - The Group continues to enhance its supplier trading platform for real-time inventory and sales data synchronization, aiming for better quality control and loss rate monitoring[89]. - The average trade receivables turnover days improved from 43.4 days in 2021 to 36.7 days in 2022 due to proactive payment collection[158]. - The average inventory turnover days slightly increased from 10.1 days in 2021 to 10.7 days in 2022[158]. Technology and Innovation - The Group aims to accelerate the digitalization of its operations and industry chain through IT investments and empowerment[41]. - The Group is upgrading its digitalized intelligent warehousing and logistics system to minimize common warehousing and logistics mistakes[73]. - Research and development expenses rose to RMB 172.980 million in 2022 from RMB 139.742 million in 2021, highlighting the Group's commitment to innovation[91]. - The Group plans to enhance agricultural technology services and incubate more self-branded products, including establishing specialized processing factories near core product origins[82]. Governance and Management - The independent non-executive directors play a crucial role in providing independent advice on the operation and management of the company[185]. - The educational and professional backgrounds of the directors suggest a strong foundation in economics, law, and business management, enhancing the company's governance[188]. - Mr. Zhu Qidong, aged 48, is the executive Director and deputy general manager, responsible for procurement, wholesale, and sales[174]. - Mr. Pan Pan, aged 43, is a non-executive Director providing strategic advice on the operation and management of the Group[178]. - Dr. Wu has been a professor at Jinan University since July 2006, contributing to academic and professional development in accounting[196].

[0 -> 25] 各位現場和線上參加的投資者朋友大家早上好那歡迎各位出席深圳白果園實業集團股份有限公司2022年年度業績發布會我是綜合財經的索菲 歡迎各位那今天的會議呢是透過我們現場和線上同步直播進行的首先為各位介紹一下今天的出席的管理層創始人及董事長余慧永先生歡迎余董 [28 -> 44] 常務副總經理及執行董事焦躍先生財務總監及副總經理賴顯揚先生以及董事長助理及高級投融資總監善逸康先生 [47 -> 76] 那我們今天的這個業績發布會呢分為兩個環節第一個環節呢我們會有請管理層簡要的介紹一下公司在2022年取得的一個成績然後是我們的問答部分那現在我們就請董事長余慧永先生致歡迎詞有請余總好各位上人好首先呢感謝各位親身到場出席以及各通過網絡餐會的投資者對白骨園的關注 [77 -> 104] 2022年對所有的經營者都是一個巨大的挑戰絕大多數零售公司呢業績是下滑甚至是巨虧的但是白果園實現了門店數銷售額毛利率淨利率淨利潤的逆勢增長為什麼 [108 -> 134] 首先我们从事了一个非常好的行业果业是一个健康产业水果是不需要教育的健康食品在饮食结构中的比例在自然增长前面10年的数据已经说明了其次水果是一类天然食品不 ...