Investment Rating - The report maintains a rating of "Buy" for the company [3]. Core Views - The company is demonstrating steady progress in its operations, with voluntary lock-up and share buyback reflecting confidence in future development [2]. - The company’s controlling shareholders have committed to not selling shares for six months and plan to buy back up to 100 million HKD in shares, indicating strong belief in the company's growth potential [3]. - The company is integrating its supply chain and expanding its store formats, which is expected to open new growth opportunities [3]. Financial Projections - The forecasted net profits for the company from 2024 to 2026 are 212 million, 253 million, and 312 million RMB respectively, with corresponding PE ratios of 24x, 20x, and 16x [3]. - The company’s revenue is projected to grow from 6,094 million RMB in 2023 to 6,762 million RMB in 2025, and further to 7,886 million RMB in 2026, reflecting a growth rate of 10.62% and 16.63% respectively [6]. Recent Developments - The company has recently launched a new factory in Hubei and is acquiring a 41% stake in Beihai Daixiaji Food Co., which will increase its ownership to 51% [3]. - The company is also exploring new store formats by entering agricultural markets with a new sub-brand, which is expected to enhance its market presence [3].

中期報告 INTERIM REPORT 中期報告 2024 鍋圈食品（上海）股份有限公司 GUOQUAN FOOD (SHANGHAI) CO., LTD. （於中華人民共和國註冊成立的股份有限公司） Stock Code 股份代號 : 2517 2024 INTERIM REPORT CONTENTS 目錄 Page 頁次 Corporate Profile 公司介紹 2 Corporate Information 公司資料 4 Definitions 釋義 7 Business Review and Outlook 業務回顧及展望 11 Management Discussion and Analysis 管理層討論及分析 18 Corporate Governance and Other Information 企業管治及其他資料 32 Independent Review Report 獨立審閱報告 43 Interim Condensed Consolidated Statement of Profit or Loss 中期簡明綜合損益表 45 Interim Condensed Consolida ...

Investment Rating - The report maintains a rating of "Accumulate" for the company [2][4]. Core Insights - The company is optimizing its store network structure and is expected to restart store openings, with profitability continuing to improve [4]. - The projected net profit for 2024 and 2025 has been adjusted downwards to 2.12 billion and 2.53 billion RMB respectively, with a new forecast for 2026 net profit at 3.12 billion RMB, corresponding to PE ratios of 29, 25, and 20 for 2024-2026 [4]. - In the first half of 2024, the company reported revenue of 26.65 billion RMB, a year-on-year decrease of 3.5%, while gross profit was 6.09 billion RMB, an increase of 5.3%, resulting in a gross margin of 22.8%, up 1.9 percentage points year-on-year [4]. Summary by Sections Store Network Optimization - The company is adjusting its offline store network and expanding online sales channels, with a total of 9,660 stores as of the first half of 2024, a decrease of 2.6% year-on-year [4]. - The company plans to open approximately 200 new market stores in 2024 and has optimized existing rural stores to better meet consumer needs [4]. Product Structure and Profitability - The gross margin reached 22.8% in the first half of 2024, an increase of 1.9 percentage points year-on-year, driven by enhanced bargaining power with suppliers and effective cost control [4]. - The company is shifting from a food supermarket model to a community central kitchen model, focusing on high-margin products [4].

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，概不對因本公告全部或任何部分內容而產生或因倚 賴該等內容而引致的任何損失承擔任何責任。 GUOQUAN FOOD (SHANGHAI) CO., LTD. 鍋圈食品（上海）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：2517） 截至二零二四年六月三十日止六個月之 中期業績公告 二零二四年中期業績摘要 附註： 核心經營利潤界定為經調整影響可比性的項目影響的經營利潤。影響可比性的項目包括：(i)上 市開支；及(ii)非上市可轉換可贖回優先股的公允價值變動損益。核心經營利潤並非國際財務報 告準則計量。詳情請參閱本公告「管理層討論及分析－非國際財務報告準則計量」一節。 1 • 截至二零二四年六月三十日止六個月的收入為人民幣2,665.0百萬元，同比減 少3.5%。 • 截至二零二四年六月三十日止六個月的毛利為人民幣608.9百萬元，同比增加 5.3%。截至二零二四年六月三十日止六個月的毛利率為22.8%，去年同期為 20.9%。 • 截至二零二四年六月三十日止六個月的淨利 ...

Company Overview - Guoquan Food is a leading and rapidly growing home meal products brand in China, focusing on ready-to-eat, ready-to-heat, and ready-to-cook products, particularly hotpot and barbecue items[5]. - The product portfolio includes eight categories: hotpot products, barbecue products, beverages, solo-dining meals, ready-to-cook meal kits, fresh produce, western cuisines, and snacks[5]. - The company has established a store network primarily comprising franchised stores, deriving substantially all revenue from product sales to franchisees, without charging franchise fees[5]. Financial Performance - Guoquan Food (Shanghai) Co., Ltd. reported a revenue of RMB 1.2 billion for the fiscal year ended December 31, 2023, representing a year-over-year increase of 15%[15]. - The company achieved a net profit of RMB 150 million, which is a 20% increase compared to the previous year[15]. - The annual report indicates a commitment to expanding both online and offline shopping options to maximize consumer engagement[7]. - The Group recorded revenue of RMB 6,094.1 million, representing a decrease of approximately 15.0% compared to the corresponding period of 2022[22]. - The Group achieved a gross profit of RMB 1,350.9 million and a gross profit margin of 22.2%, an increase of 4.8 percentage points from 17.4% over the corresponding period of 2022[22]. - The net profit for the year was RMB 263.4 million, representing an increase of approximately 9.3% over the corresponding period of 2022[22]. - The adjusted net profit (Non-IFRS measure) for the year was RMB 318.0 million, reflecting a year-on-year increase of 23.8%[22]. Market Expansion and Strategy - The company plans to expand its market presence by entering three new provinces in China by the end of 2024[15]. - Guoquan Food is investing RMB 200 million in R&D for new product development, focusing on plant-based hotpot ingredients[15]. - The Group aims to enhance its online sales channels, targeting a 30% increase in e-commerce revenue by the end of 2024[15]. - The Group's strategy focuses on digital empowerment of the supply chain and franchisees to improve market responsiveness[29]. - The Group aims to consolidate market leadership by focusing on brand, product, and channel development[27]. Product Development and Innovation - A total of 339 new SKUs were launched in 2023 to cater to evolving consumer demands and preferences[21]. - The management highlighted the successful launch of a new hotpot soup base product, which contributed to a 10% increase in sales in Q4 2023[15]. - The Group plans to enhance its R&D capabilities and optimize existing products based on consumer feedback to meet local preferences[52]. Supply Chain and Operational Efficiency - The company emphasizes operational efficiency through a robust supply chain and digitalized management system, ensuring product quality and safety[7]. - The Group achieved next day delivery for most orders through a streamlined supply chain, optimizing costs and enhancing product affordability for franchisees and consumers[40]. - The Group's supply chain system ensures high quality and safety of products while maintaining cost advantages through stable relationships with upstream suppliers[45]. - The Group's digital supply chain allows for real-time monitoring of supply and demand dynamics, improving overall efficiency[48]. Online Sales and Marketing - Guoquan Food is developing online sales channels, including its Guoquan APP and partnerships with third-party food delivery platforms like Meituan and Ele.me, enhancing consumer reach[7]. - The Group achieved over six billion exposures through livestreaming and short-form videos on Douyin in 2023, enhancing consumer interaction[36]. - The Group's marketing efforts on social media platforms, including Douyin, resulted in over 6 billion exposures in 2023[38]. Governance and Management - The company has a diverse board with members experienced in finance, law, and the catering industry, which supports comprehensive decision-making[130][132]. - The company emphasizes independent judgment in its board operations, enhancing its governance framework[130][131]. - The Group is committed to maintaining high standards of financial management and internal control, as emphasized by the roles of its financial officers[136]. Employee and Community Relations - As of December 31, 2023, the Group had a total of 2,045 employees, with total employee benefit expenses amounting to RMB 463.4 million for the year[169]. - The Group is committed to integrating ESG criteria into its business activities, focusing on product quality, consumer service, and environmental protection[169]. - The Group's charitable donations for the year ended December 31, 2023 amounted to approximately RMB 3.5 million[199]. Future Plans and Use of Proceeds - The company plans to utilize the proceeds for construction, investment, and acquisition of plants, with a total allocation of 25% or HK$112.1 million expected to be fully utilized by December 31, 2027[189]. - The company allocated 40% or HK$179.5 million of the proceeds for opening and operating self-operated stores, also expected to be fully utilized by December 31, 2027[189]. - The company has plans for future utilization of the remaining proceeds as disclosed in the "Future Plans and Use of Proceeds" section of the Prospectus[190].

智通财经APP讯，锅圈(02517)发布截至2023年12月31日止年度业绩，该集团期内取得收入60.94亿元(人民币，下同);股东应占溢利2.4亿元，同比增加4.23%;每股基本盈利8.94分;拟派发末期股息每股0.0521元。 公告称，毛利由2022年度的12.49亿元增长8.2%至期内的13.51亿元，毛利率由2022年度的17.4%改善至期内的22.2%，主要是由于规模优势所带来的更好的成本控制能力，伴随新产品的开发及原有产品的升级，以及收购工厂后自产比例的提升所产生的额外毛利。 尽管2023年的经济环境充满挑战和不确定性，集团的零售门店网络仍然持续扩张。于2023年12月31日，集团在全国31个省、自治区及直辖市共有10307家零售门店。 ...

Financial Performance - For the year ended December 31, 2023, the revenue was RMB 6,094.1 million, a decrease of 15.0% year-on-year[1] - The gross profit for the same period was RMB 1,350.9 million, an increase of 8.2%, with a gross margin of 22.2% compared to 17.4% in the previous year[1] - The net profit for the year was RMB 263.4 million, reflecting a year-on-year increase of 9.3%[1] - Adjusted net profit (non-IFRS measure) was RMB 318.0 million, up 23.8% year-on-year[1] - Total revenue decreased by approximately 15.0% from RMB 7,173.5 million in 2022 to RMB 6,094.1 million in 2023[16] - Revenue from home meal products accounted for 97.5% of total revenue in 2023, down from 98.4% in 2022, with a decrease of about 15.8% from RMB 7,058.8 million to RMB 5,940.5 million[16] - Service revenue increased by approximately 33.9% from RMB 114.7 million in 2022 to RMB 153.6 million in 2023, driven by an increase in franchise store numbers[16] - Gross profit increased by 8.2% from RMB 1,249.0 million in 2022 to RMB 1,350.9 million in 2023, with gross margin improving from 17.4% to 22.2%[18] - Operating profit before tax increased by approximately 9.5% from RMB 332.0 million in 2022 to RMB 363.4 million in 2023[22] - Net profit increased by approximately 9.3% from RMB 241.0 million in 2022 to RMB 263.4 million in 2023, with net profit margin improving from 3.4% to 4.3%[24] Store and Membership Growth - The total number of retail stores reached 10,307, with 10,300 being franchise stores, marking an increase from 9,221 stores in the previous year[4] - The registered membership reached approximately 27.9 million, with prepaid card deposits increasing by 18% to about RMB 720 million[6] Product Development and Sales Strategy - The company launched 339 new SKUs in the fiscal year 2023 to meet changing consumer preferences[7] - The company continues to expand its online sales channels, achieving over 6 billion exposures through Douyin for product promotions[5] - The company plans to expand its store network to new regions and enhance market penetration in existing areas to increase direct consumer reach[10] - The company aims to develop its online sales platforms, including third-party delivery services and its own apps, to create a hybrid retail model[10] - The company intends to strengthen its R&D capabilities and product variety to maintain its competitive edge in the market[12] - The company is exploring new consumer scenarios, such as camping, to expand its product offerings and market share[11] - The company plans to enhance its brand image and marketing efforts to increase consumer engagement and loyalty[13] Financial Position and Assets - As of December 31, 2023, the group's net asset value was RMB 3,378.8 million, an increase from RMB 2,689.6 million as of December 31, 2022[29] - The group's capital debt ratio decreased from 4.9% as of December 31, 2022, to 3.3% as of December 31, 2023[29] - The group's inventory decreased by 31.3% from RMB 1,047.4 million as of December 31, 2022, to RMB 719.5 million as of December 31, 2023[34] - Trade receivables decreased from RMB 134.3 million as of December 31, 2022, to RMB 54.3 million as of December 31, 2023[35] - Trade payables decreased from RMB 577.5 million as of December 31, 2022, to RMB 457.3 million as of December 31, 2023[36] - Non-current assets totaled RMB 1,776,353 thousand, an increase of 6.3% from RMB 1,671,642 thousand in the previous year[45] - Current assets rose to RMB 2,875,293 thousand, up 19.4% from RMB 2,409,028 thousand in 2022[45] - Current liabilities decreased to RMB 1,167,888 thousand, down 10.4% from RMB 1,303,017 thousand in the previous year[45] - Total equity attributable to shareholders increased to RMB 3,378,783 thousand, up from RMB 2,689,551 thousand in 2022[48] Dividend and Shareholder Information - The board declared a final dividend of RMB 0.0521 per share for the year, compared to no dividend in the previous year[1] - The proposed final dividend for the year ended December 31, 2023, is RMB 0.0521 per share, subject to shareholder approval at the annual general meeting[80] - The company does not have a predetermined dividend payout ratio, and future dividends will depend on operational performance and financial conditions[81] - The annual general meeting is scheduled for June 27, 2024, where the proposed dividend will be discussed[82] - The company will suspend shareholder registration from June 24, 2024, to June 27, 2024, to determine eligibility for attending the annual general meeting and voting[83] - To qualify for the proposed final dividend, the company will suspend shareholder registration from July 4, 2024, to July 9, 2024[83] Audit and Compliance - The independent auditor, Ernst & Young, confirmed that the financial statements for the year ended December 31, 2023, are consistent with the audited financial reports[86] - The audit committee, composed of three independent non-executive directors, reviewed the consolidated annual performance for the year ended December 31, 2023[85] - The company has adopted the corporate governance code as per the Stock Exchange Listing Rules to enhance accountability and shareholder value[87] - The company has complied with the standards of the securities trading code from the date of listing until December 31, 2023[89] - The annual report for the year ended December 31, 2023, will be published on the company's website and the Stock Exchange website[89] Other Financial Metrics - Cash generated from operating activities increased significantly from RMB 285.3 million in 2022 to RMB 678.3 million in 2023[28] - Cash and bank deposits increased from RMB 1,263.3 million in 2022 to RMB 1,935.7 million in 2023[28] - Administrative expenses increased by 23.2% from RMB 403.7 million in 2022 to RMB 497.2 million in 2023, mainly due to increased listing expenses and administrative costs from acquired factories[21] - Sales and distribution expenses decreased by 7.3% from RMB 624.6 million in 2022 to RMB 578.8 million in 2023, primarily due to reduced revenue[20] - The company reported a foreign exchange loss of RMB 201 thousand related to the translation of overseas operations[43] - The company recorded a foreign exchange gain of RMB 7,210,000 in 2023, compared to a gain of RMB 77,000 in 2022, reflecting a substantial increase[66] - The financial costs for 2023 totaled RMB 5,432,000, significantly higher than RMB 2,564,000 in 2022, indicating an increase of over 111%[68] - Research and development expenses for 2023 amounted to RMB 8,537,000, a slight decrease from RMB 9,981,000 in 2022[66] - The company received government grants related to production facilities, which will be recognized in the income statement over the useful life of the related assets[64]