Core Viewpoint - The recent financial and ESG report from October Rice Field highlights the company's sustainable growth potential and provides a comprehensive new perspective for the market [1]. Group 1: Financial Performance - In 2024, October Rice Field achieved total revenue of RMB 5.745 billion, a year-on-year increase of 18.0%, and an adjusted net profit of RMB 350 million, up 115.5% [3][4]. - The gross profit margin reached 17.7%, an increase of 5 percentage points compared to the previous year [3]. - The rice product category contributed RMB 4.015 billion, accounting for 69.9% of total revenue, while corn products generated RMB 815 million, representing 14.2% of total revenue [4]. Group 2: Growth Drivers - The company's growth is attributed to "innovation-driven" strategies, focusing on high-end rice development and expanding the corn product line [3][5]. - October Rice Field has developed a diverse range of corn products, including over 30 subcategories, catering to consumer demand for variety [5]. - The company is positioned to benefit from favorable market trends and policies aimed at boosting domestic consumption and promoting healthy eating [11][13]. Group 3: Strategic Initiatives - October Rice Field plans to upgrade its brand positioning to "Family Food Innovation Brand" by 2025, enhancing brand value and market recognition [6][9]. - The company aims to maintain rapid growth through a dual strategy of expanding existing product lines and introducing new categories [10][12]. - The focus on high-quality development and strategic brand upgrades reflects the company's commitment to innovation and market leadership [20]. Group 4: Social Responsibility and Rural Development - October Rice Field contributes to rural revitalization by connecting industrial and agricultural sectors, promoting deep processing of agricultural products, and creating job opportunities for local farmers [16][17]. - The company has invested over RMB 14 billion in raw grain procurement from Northeast farmers from 2020 to 2024, significantly benefiting local communities [17]. - October Rice Field's commitment to social responsibility is recognized through various awards, including being named a model for rural revitalization in ESG practices [19][20].

Financial Performance - Revenue for 2024 reached RMB 5,745,315, an increase of 17.9% compared to RMB 4,867,026 in 2023[16] - Gross profit for 2024 was RMB 1,019,372, representing a gross margin of approximately 17.7%[16] - The company reported a profit for the year of RMB 204,373, a significant recovery from a loss of RMB 64,863 in 2023[16] - Adjusted net profit for 2024 was RMB 349,466, up from RMB 162,225 in 2023, indicating a growth of 115.5%[16] - The Group's profit for the year improved from a loss of RMB 64.9 million in 2023 to a profit of RMB 204.4 million in 2024[106] - Adjusted net profit (non-IFRS measure) increased by 115.5% from RMB 162.2 million in 2023 to RMB 349.5 million in 2024, with an adjusted net profit margin rising from 3.3% to 6.1%[115] Assets and Liabilities - Total assets as of December 31, 2024, were RMB 4,613,818, a slight decrease from RMB 4,734,811 in 2023[20] - Current assets decreased to RMB 2,682,858 in 2024 from RMB 3,567,238 in 2023, reflecting a decline of 25%[20] - Total liabilities for 2024 were RMB 1,059,048, down from RMB 1,351,301 in 2023, showing a reduction of 21.6%[20] - Net assets increased to RMB 3,554,770 in 2024, compared to RMB 3,383,510 in 2023, indicating a growth of 5.1%[20] Revenue Breakdown - Revenue from rice products increased by 4.8% to RMB 4,014.5 million, accounting for 69.9% of total revenue, while revenue from corn products surged by 523.2% to RMB 815.1 million, representing 14.2% of total revenue[57] - Revenue from whole grain, bean, and other products remained stable at RMB 469.5 million, while dried food and other products saw a 2.5% increase to RMB 446.2 million[57] - Revenue from online channels increased by 8.9% from RMB3,305.6 million in the previous year to RMB3,598.7 million this year, accounting for the majority of total revenue[65] Market Strategy and Growth - The company plans to expand its market presence and invest in new product development in the upcoming fiscal year[16] - Future guidance indicates a focus on improving operational efficiency and enhancing product offerings to drive revenue growth[16] - The Group aims to provide pre-packaged premium products, focusing on rice, corn, whole grains, beans, and dried food, to meet the growing consumer demand for health and quality[43] - The market for pre-packaged products is expanding due to consumer preferences for convenience and quality, leading to higher growth rates in this segment[42] Operational Efficiency - The inventory turnover days increased from 127 days in 2023 to a projected 113 days in 2024, indicating improved efficiency[22] - The gearing ratio improved significantly from 28.5% in 2023 to a projected 23.0% in 2024, reflecting a stronger financial position[22] - Efficient supply chain management allows for order-based production, ensuring products are processed and dispatched within three days, maintaining freshness[79] Leadership and Management - The company has seen significant leadership continuity with directors having extensive backgrounds in the food industry and finance, enhancing strategic decision-making capabilities[175] - The company is actively expanding its management team with experienced professionals to strengthen its operational and financial strategies[179] - The leadership team is well-educated, with degrees from prestigious institutions, enhancing the company's credibility and strategic direction[177] Investments and Future Outlook - The Group made a significant investment in Migao Group Holdings Limited on March 21, 2024, with an initial capital contribution of RMB 152.576 million, representing a 4.4% shareholding[155] - The Group maintains a positive outlook on future prospects related to its equity investments and has not altered its investment strategy due to short-term market fluctuations[157] - There are currently no plans for acquiring other material investments or capital assets during the reporting period[159]

Company Overview - October Rice Field (十月稻田) is a well-known "high-end rice" brand in Hong Kong, leveraging the fertile black soil of Northeast China to brand and sell rice nationwide through various e-commerce platforms [4]. - The company has recently expanded its product line to include corn, which is expected to become a significant growth driver for future performance [4]. Financial Performance - For the fiscal year 2023, the company reported a revenue of 5.745 billion RMB, representing an 18.0% year-over-year increase [4]. - Adjusted net profit reached 350 million RMB, showing a remarkable growth of approximately 116% compared to the previous year [4]. - The rice segment remains the core revenue driver, generating 4.014 billion RMB in revenue, a 4.8% increase year-over-year, while corn products saw a substantial revenue increase of 523.2%, totaling 815 million RMB [4]. Market Sentiment - The stock price of October Rice Field has been under pressure, recently declining by 4.93% to 6.75 HKD per share, with a market capitalization of 7.21 billion HKD [2]. - Following a significant share reduction by major shareholder Liu Qiangdong, who sold 1.1001 million shares at 8.0172 HKD each, investor sentiment has been mixed, with some choosing to sell [3][4]. - Analysts suggest that the recent increase in import tariffs may reduce agricultural imports, potentially boosting domestic agricultural demand and making the sector an attractive investment option [5]. Industry Outlook - The agricultural sector is expected to benefit from policies aimed at strengthening domestic production, as highlighted in the recent "Plan for Accelerating the Construction of an Agricultural Powerhouse (2024-2035)" issued by the central government [5]. - The focus on ensuring stable and secure supply of food and important agricultural products is seen as a priority, which may enhance the investment value of companies like October Rice Field [5][6].

Market Overview - The trade war escalation has severely impacted global stock markets, with Hong Kong's Hang Seng Index dropping over 3000 points, marking its largest point decline and falling below the 20,000 mark [1] - The Hang Seng Index closed down 13.22% or 3021.51 points at 19828.30, with a trading volume of 6208.98 million HKD [1] - The Hang Seng China Enterprises Index fell 13.75% to 7262.72, and the Hang Seng Tech Index dropped 17.16% to 4401.51 [1] Blue Chip Performance - Xiaomi Group-W (01810) saw a significant decline of 20.59%, closing at 36.45 HKD, contributing to a 275.67 point drop in the Hang Seng Index [2] - Other notable declines included BYD Electronics (00285) down 22.37%, Sunny Optical Technology (02382) down 20.46%, and Alibaba-W (09988) down 17.98% [2] Sector Performance - Major tech stocks experienced sharp declines, with Xiaomi down over 20%, Alibaba nearly 18%, and Tencent over 12% [3] - Pharmaceutical stocks faced significant losses, with Deqi Pharmaceuticals-B (06996) down 30.77% and Hengrui Medicine (00013) down 22.12% [3][4] - Apple-related stocks also suffered, with AAC Technologies (01415) down 32.13% and BYD Electronics down 22.37% [4] Trade Policy Impact - The U.S. has implemented enhanced data access restrictions for Chinese institutions, affecting key biomedical databases, which may complicate the pharmaceutical supply chain [4] - Trump's tariff policies are expected to increase Apple's costs by approximately 8.5 billion USD annually, potentially raising the price of the iPhone 16 Pro Max significantly [5][6] Automotive Sector - The automotive supply chain is under pressure due to new tariffs, with companies like XPeng Motors-W (09868) and Li Auto-W (02015) experiencing declines of 20.29% and 17.85%, respectively [6][7] - The U.S. plans to impose a 25% tariff on vehicles produced outside the U.S., which could lead to higher consumer prices and impact global supply chains [7] Commodity Market - Oil prices have dropped significantly, with U.S. crude futures falling below 60 USD per barrel, influenced by tariff policies and OPEC+ production increases [8] - Base metals have also seen declines, with copper prices down 10.36% and aluminum down 6.63% week-over-week [9] Agricultural Sector - October Rice (09676) saw a notable increase of 28.78%, attributed to potential price increases in agricultural products due to tariffs [10] - The agricultural sector may benefit from reduced imports of U.S. products, leading to price increases for domestic crops [10] Rare Earth Sector - The rare earth sector experienced volatility, with companies like Jinli Permanent Magnet (06680) initially rising before closing down 23.68% [11] - New export controls on rare earth elements may create strategic opportunities in the sector, despite short-term price fluctuations [11]

Market Overview - The global financial market experienced a significant downturn, with the Hang Seng Index dropping over 3,000 points, a decline of 13.22% [1] - Major indices such as the National Enterprises Index and the Hang Seng Technology Index also saw substantial losses, falling by 13.75% and 17.16% respectively [1] Sector Performance - Large technology stocks and financial sectors faced severe declines, with Xiaomi dropping over 20% and Alibaba nearly 18% [3][5] - Chinese brokerage firms also suffered, with China International Capital Corporation (CICC) falling over 20% and other firms like China Galaxy and CITIC Securities dropping more than 19% [6][7] Specific Stock Movements - Apple-related stocks were heavily impacted, with companies like Gao Wei Electronics plummeting over 32% and BYD Electronics down over 22% [9][10] - Biotech stocks saw significant declines, with companies like Ginkgo Bioworks and LianKe Pharmaceuticals dropping over 29% [11] - Semiconductor stocks also faced downturns, with INNOCARE and Hongguang Semiconductor falling over 23% [12] Agricultural Sector - In contrast to the overall market, agricultural stocks performed well, with October Rice Field rising nearly 29% [15] Capital Flows - Southbound capital saw a net inflow of HKD 15.373 billion, indicating continued interest in Hong Kong stocks despite the market downturn [15] Future Outlook - Analysts suggest that the Hong Kong market still holds relative return potential due to improving domestic economic indicators and ongoing capital inflows [17]

Core Insights - The iSEE Global Awards highlighted innovation and taste in the food sector, with October Rice Field winning five awards, including the "iSEE Global Food Innovation Award" for its corn product innovations [2][3] - The rise of health-conscious eating has made corn a popular alternative staple, leading October Rice Field to develop over 30 corn-based products, transforming corn from a traditional staple to a diverse, fast-moving consumer good [3][5] Company Strategy - Since its inception, October Rice Field has focused on innovation and change, leveraging e-commerce partnerships to achieve rapid growth and establish a strong online presence across major platforms [4][5] - The company has expanded its marketing strategy by utilizing founder IPs to enhance brand visibility and consumer engagement, collaborating with popular media figures to promote its products [4][6] Market Performance - October Rice Field's corn products have seen significant sales growth, with over 13 million units sold on Douyin by March 2025, and revenue from corn products rising from 2.7% in 2023 to 14.2% in 2024, totaling 815 million yuan [5][6] - The company is positioned to benefit from the increasing demand for healthy food options, with projections indicating that the market for staple corn products could reach 5.77 trillion yuan by 2025 [7][8] Supply Chain and Quality Control - October Rice Field emphasizes quality control by sourcing from Northeast China's fertile soil and implementing a comprehensive supply chain that includes modern factories and storage facilities [6][7] - The company has established a modern logistics system to ensure the delivery of safe, healthy, and delicious food products to consumers, enhancing user experience [7][8] Industry Impact - The success of October Rice Field in the corn category offers a new model for agricultural branding and industry chain construction, potentially influencing modern agricultural practices [8] - The company aims to continue its innovation across various product categories, contributing to the agricultural economy and consumer food quality [8]

Core Viewpoint - October Rice Field Group Co., Ltd. reported a revenue of 5.745 billion yuan for 2024, representing an 18% year-on-year increase, and an adjusted net profit of 350 million yuan, up 115.5% year-on-year [3][4]. Revenue Breakdown - The company's online channel revenue reached 3.598 billion yuan, an 8.86% increase from the previous year, with e-commerce platform revenue at 2.384 billion yuan, down 15.97%, and self-operated online store revenue at 1.215 billion yuan, up 159.06% [3][4]. - Revenue from modern supermarkets was 1.013 billion yuan, showing a robust growth of 54.89% year-on-year, attributed to deep cooperation with quality clients [3][4]. Product Performance - Rice products remained the main revenue driver, generating 4.014 billion yuan, a 4.8% increase, accounting for 69.9% of total revenue, due to a shift towards mid-to-high-end rice varieties [4]. - Corn product revenue surged to 815 million yuan, a significant increase of 523.2% year-on-year, reflecting a growing consumer preference for corn as a healthy carbohydrate source [4][5]. Market Trends - The trend towards healthy eating has led to increased demand for corn, which is seen as a quality carbohydrate that aligns with consumer preferences for low-calorie, high-fiber foods [5][6]. - The National Whole Grain Action Plan (2024-2035) emphasizes increasing the proportion of whole grains in residents' diets, indicating a potential growth area for corn products in the future [6].

Core Viewpoint - October Rice Field Group reported a significant increase in revenue and adjusted net profit for the fiscal year 2024, reflecting effective growth strategies and market adaptation [2][4]. Financial Summary - Total revenue reached RMB 5,745.3 million, an increase of approximately 18.0% compared to RMB 4,867.0 million in 2023 [3]. - Adjusted net profit rose from RMB 162.2 million to RMB 349.5 million, marking a growth of 115.5% [2][3]. - Adjusted net profit margin improved from 3.3% in the previous year to 6.1% in 2024 [2]. Growth Drivers - The revenue growth was attributed to structural optimization, product innovation, and channel transformation [4]. - High-end rice products accounted for 69.9% of total revenue, with rice product revenue reaching RMB 4,014.5 million [4]. - The company has been recognized for leading national sales of Northeast rice for five consecutive years and serving 130 million households in China [4]. Product Innovation - October Rice Field has shifted its corn product line towards health-oriented, convenient snack options, aligning with the "Healthy China 2030" strategy [5]. - The company launched over 30 new corn products, including corn sticks and various types of sweet corn, catering to diverse consumer preferences [5]. Sales Channel Transformation - The company has effectively transitioned from offline to online sales, leveraging e-commerce platforms such as JD.com and Pinduoduo [6]. - October Rice Field has established partnerships with nearly 100 modern supermarket chains and is exploring social e-commerce and community group buying opportunities [6]. Strategic Positioning - The company is focused on modernizing agriculture and enhancing food safety through its five production bases and regional centers [7]. - October Rice Field aims to integrate agriculture with processing and e-commerce, enhancing rural consumption and agricultural product distribution [8]. - The company is committed to building a comprehensive supply chain from farm to table, ensuring quality and safety for consumers [8].

Financial Performance - The company's total revenue for the year ended December 31, 2024, was RMB 5,745.3 million, an increase of approximately 18.0% compared to RMB 4,867.0 million in 2023[12] - Gross profit rose by 64.8% from RMB 618.7 million in 2023 to RMB 1,019.4 million in 2024, with the gross margin increasing from 12.7% to 17.7%[12] - The company recorded a net profit of RMB 204.4 million for the year, a significant turnaround from a net loss of RMB 64.9 million in the previous year[12] - Adjusted net profit increased by 115.5% from RMB 162.2 million in 2023 to RMB 349.5 million in 2024, with an adjusted net profit margin rising from 3.3% to 6.1%[12] - The company achieved a revenue of RMB 5,745.3 million for the year ended December 31, 2024, representing a 18.0% increase from RMB 4,867.0 million in 2023[15] - The company recorded revenue of RMB 5,745.3 million for the fiscal year 2024, an increase of 18.0% compared to RMB 4,867.0 million in 2023[29] - The gross profit for the fiscal year 2024 was RMB 1,019.4 million, up 64.8% from RMB 618.7 million in 2023, with a gross margin increase from 12.7% to 17.7%[29] - The group reported a decrease in cash and cash equivalents to RMB 712,972 thousand from RMB 1,457,218 thousand in the previous year, indicating a shift in liquidity management[71] Revenue Sources - Revenue from rice products increased by 4.8% to RMB 4,014.5 million, accounting for 69.9% of total revenue, while corn products revenue surged by 523.2% to RMB 815.1 million, representing 14.2% of total revenue[15] - Online sales channels generated RMB 3,598.7 million, an 8.9% increase from the previous year, with online self-operated stores seeing a significant growth of 158.9% to RMB 1,214.6 million[21] - Revenue from modern supermarkets increased by 55.0% to RMB 1,013.3 million, reflecting the company's successful channel development and partnerships with quality customers[21] - The company’s direct customer revenue increased by 32.1% to RMB 829.5 million, driven by enhanced brand recognition and increased corporate procurement for employee benefits[21] - The revenue from corn products saw substantial growth, contributing to stable cash flow and providing opportunities for product matrix and revenue source diversification[85] Market and Strategy - The Chinese economy showed resilience with a GDP growth rate of 5.0% for 2024, and retail sales of consumer goods increased by 3.5%[5] - The market for pre-packaged products is growing due to consumer preference for quality and convenience, driving the company's strategy[8] - The company aims to enhance its channel management capabilities and expand its product offerings to meet diverse consumer demands[9] - The company plans to deepen its focus on high-quality sourcing and production capabilities in key agricultural regions[9] - The overall industry dynamics will be closely monitored to adjust business strategies and product mix accordingly[9] - The company is focusing on product innovation to meet consumer demands for low-fat, healthy, and convenient options, contributing to the significant growth in corn product sales[15] Operational Efficiency - The company has over 20 automated production lines in operation as of December 31, 2024, enhancing production efficiency[25] - The company has established five regional distribution centers and over ten local warehouses to ensure timely and reliable contract fulfillment[25] - The company focuses on food safety and quality control throughout the entire operational process, from procurement to sales[26] - The company has invested in advanced production machinery and technology to maintain product quality and meet consumer preferences[24] - The company has optimized its internal systems and processes to improve work efficiency and enhance employee service experience[115] Expenses and Costs - Sales and distribution expenses rose by 58.5% to RMB 513.8 million in 2024, driven by increased commission fees from social e-commerce platforms and higher advertising costs[32] - Administrative expenses decreased from RMB 154.5 million in 2023 to RMB 148.2 million in 2024, mainly due to the absence of listing expenses incurred in 2023[33] - Financial costs decreased by 38.2% to RMB 13.4 million in 2024, attributed to foreign exchange gains from currency settlements[35] - Employee costs rose to RMB 296,074 thousand in 2024 from RMB 271,901 thousand in 2023, marking an increase of approximately 8.9%[93] Inventory and Receivables - Inventory decreased by 15.2% from RMB 1,604.8 million as of December 31, 2023, to RMB 1,360.2 million as of December 31, 2024, with inventory turnover days improving from 127 to 113 days[46] - Trade receivables increased by 55.4% from RMB 242.8 million to RMB 377.4 million, with turnover days decreasing from 24 to 20 days[47] - The company recognized a total of RMB 1,360,169,000 in net inventory as of December 31, 2024, down from RMB 1,604,828,000 in 2023, indicating a reduction of about 15.2%[103] - Trade receivables from third parties increased to RMB 383,188,000 in 2024 from RMB 245,634,000 in 2023, marking a growth of approximately 55.8%[105] Dividends and Shareholder Returns - The board proposed a final dividend of RMB 0.164 per ordinary share, totaling approximately RMB 175.2 million[3] - Proposed final dividend per ordinary share is RMB 0.164 for 2024, up from RMB 0.031 in 2023, reflecting a significant increase of 428.6%[108] - The total amount of proposed final dividend for 2024 is approximately RMB 175.2 million, which is about 50.1% of the adjusted net profit for the year[110] Corporate Governance and Compliance - The company has complied with all applicable provisions of the Corporate Governance Code, except for the separation of the roles of Chairman and CEO[122] - The audit committee consists of one non-executive director and two independent non-executive directors, ensuring proper oversight of financial reporting[125] - The financial statements for the year ending December 31, 2024, have been reviewed by KPMG, although they do not provide an assurance conclusion[126] - The board includes a mix of executive directors and independent directors to ensure balanced governance[134] Future Plans and Investments - The company plans to invest up to HKD 280 million in safe and liquid financial products for cash management within 12 months from the approval date of the shareholders' meeting[121] - 35% of the proceeds (approximately HKD 250.74 million) will be used to enhance collaboration with suppliers and strengthen procurement capabilities, expected to be utilized by the end of 2025[119] - 30% of the proceeds (approximately HKD 214.92 million) is allocated for capacity expansion, upgrading existing production lines, and increasing storage, also expected to be used by the end of 2025[119] - 10% of the proceeds (approximately HKD 71.64 million) will be used to deepen channel coverage and build a sales ecosystem, with a planned utilization by the end of 2025[119]

证券时报网讯，港股通标的中，十月稻田以15.90%的涨幅位居榜首，紧随其后的是科济药业-B，涨幅 达到13.35%。 晶泰控股-P、天立国际控股、金山云、小鹏汽车-W、蒙古焦煤和哔哩哔哩-W等涨逾4%。 校对：刘星莹 永达汽车也表现不俗，涨幅为11.11%。 丘钛科技和华虹半导体分别涨8.67%和7.61%，老铺黄金和创新奇智分别上涨8.26%和6.95%，TCL电 子、汽车街、海昌海洋公园、万物云涨逾5%。 ...