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%。 ...

Core Viewpoint - The company, October Rice Field, is actively engaging in social responsibility initiatives by supporting frontline workers through charitable activities, thereby enhancing its brand image and societal value [2][3]. Group 1: Charitable Activities - October Rice Field collaborated with the China Population Welfare Foundation to hold a charity event in Beijing, delivering 10,000 pounds of Northeast rice to frontline workers [2]. - The event aimed to express gratitude and provide warmth to urban workers who maintain city cleanliness during winter [2]. Group 2: Commitment to Social Responsibility - The company has invested approximately 7 billion yuan in raw material procurement from 2020 to 2022, supporting local farmers and contributing to the agricultural value chain [2]. - October Rice Field is involved in various philanthropic efforts, including donations for disaster relief and creating job opportunities for rural women [2]. Group 3: Recognition and Brand Value - The company has received increasing social recognition for its commitment to public welfare, including the "ESG Model for Rural Revitalization" award from Xinhua News [3]. - October Rice Field connects agriculture with consumer needs, providing healthy and safe kitchen foods while contributing to societal well-being and enhancing national happiness [3].

站在当前节点回顾2024年，经济形势依然复杂多变，消费需求总体偏弱，尤为考验消费企业的生存智慧 与应变能力。在这样的背景下，稳健前行的消费企业充分彰显出经营韧性和内在价值。展望2025年，扩 内需处于更优先的位置，消费行业的政策刺激确定性得以提升，亦有助于这类企业的厚积薄发，打开其 业绩增长和价值创造的想象力。 在第九届"FoodailyFBIC2024全球食品饮料创新大会"上，十月稻田及柴火大院两大品牌还凭借好品质和 好口感双双登榜"iSEE全球美味奖"。 这些信息表明十月稻田的市场覆盖力和竞争力进一步扩大，吸引了更多新客或是提升了老客消费粘性； 原有核心品类大米市场地位稳固，品质等竞争优势突出，创新品类玉米迅速抢占市场，实现大米和玉米 的双双领先，充分彰显其在厨房食品赛道的领导力和向新力。 中国领先的厨房食品企业十月稻田，正是这样一个值得探讨的样本。对于十月稻田的2024年，可以 用"稳中向新"四个字来概括，不仅保持业绩较快增长，还成功推动品类创新，形成更强的发展驱动力， 提升长期经营质量与潜力。 1、逆势展现较强业绩韧性，开启品类双领先 2024年，在承压的市场环境中，十月稻田仍交出了不俗的业绩答卷，稳 ...

Economic Environment and Consumer Trends - In the first half of 2024, China's retail sales of grain, oil, and food commodities increased by 9.6% compared to the same period last year[13]. - The national consumer price index (CPI) rose by 0.1% year-on-year, with grain prices increasing by 0.5%[13]. - The proportion of corn in the domestic staple food consumption structure increased to 11% since 2020, indicating a shift in consumer preferences[14]. - By 2025, the market scale of staple corn is expected to reach RMB 577 billion, highlighting significant growth potential in the new staple food market[14]. - Pre-packaged products have gained popularity among consumers due to their portability and better preservation of quality, leading to a higher growth rate in the pre-packaged market[15]. - The demand for staple food has evolved towards a focus on gourmet and nutritional elements, reflecting a more health-conscious consumer base[13]. - The market for whole grain and corn products is growing, driven by increasing health awareness and the concept of dietary balance among consumers[14]. Company Performance and Financial Results - Total revenue for the first half of 2024 was RMB 2,620.6 million, an increase of approximately 17.7% compared to RMB 2,227.2 million in the same period last year[23]. - Gross profit rose by 36.2% from RMB 326.3 million to RMB 444.3 million, with gross profit margin increasing from 14.7% to 17.0%[23]. - Profit before income tax was RMB 132.9 million, a turnaround from a loss of RMB 21.3 million in the same period last year[23]. - Net profit for the reporting period was RMB 125.8 million, compared to a net loss of RMB 24.3 million in the previous year[23]. - Adjusted net profit increased by 30.6% from RMB 114.0 million to RMB 148.9 million, with adjusted net profit margin rising from 5.1% to 5.7%[23]. Product and Market Development - The company is exploring new product development and market expansion opportunities to align with changing consumer preferences[13]. - The Group aims to enhance its multichannel ecosystem and strengthen channel management capabilities to increase brand exposure and recognition[18]. - The Group is expanding its product portfolio to include corn categories, responding to the trend of making corn a staple food[24]. - The company continues to cultivate existing categories and expand its sales network to meet diversified consumer needs[20]. Revenue Breakdown and Channel Performance - Revenue from rice products decreased by 1.9% to RMB1,707.2 million, contributing 65.2% of total revenue, down from 78.1% in the previous year[29]. - Revenue from whole grain, bean, and other products surged by 151.9% to RMB726.3 million, increasing its share of total revenue to 27.7% from 12.9%[29]. - Revenue from dried food and other products fell by 6.2% to RMB187.1 million, representing 7.1% of total revenue, down from 9.0%[29]. - Online channels generated RMB1,776.3 million, accounting for 67.7% of total revenue, with a 14.3% increase from the previous year[35]. - Revenue from e-commerce platforms decreased by 17.6% to RMB1,095.9 million, while revenue from online self-operated stores increased by 203.2% to RMB680.3 million[35]. - Modern retail channels saw a revenue increase of 35.2% to RMB393.2 million, contributing 15.0% of total revenue[35]. - Revenue from direct customers rose by 24.0% to RMB321.7 million, reflecting the company's efforts in expanding direct customer relationships[35]. - Revenue from the distribution network increased by 5.5% to RMB129.4 million, indicating ongoing exploration of distribution channels[35]. Operational Efficiency and Cost Management - Selling and distribution expenses increased by 47.9% from RMB162.0 million to RMB239.6 million, primarily due to changes in sales channel structure and increased commission expenses related to social e-commerce platforms[54]. - Administrative expenses decreased from RMB76.9 million to RMB73.2 million, mainly due to the absence of listing expenses in the reporting period[54]. - Impairment losses on trade and other receivables changed from a reversal of RMB1.1 million to a charge of RMB2.1 million during the reporting period, attributed to an increase in accounts receivable[55]. - Finance costs increased by 60.0% from RMB5.0 million to RMB8.0 million, primarily due to a higher average balance of borrowings[56]. Corporate Governance and Shareholder Information - The company has complied with all applicable corporate governance code provisions, except for the separation of the roles of chairman and general manager[106]. - The board consists of nine members, including three independent non-executive directors, ensuring adequate independent representation[108]. - The company is committed to maintaining high standards of corporate governance and will continue to review its governance practices[108]. - The interests and short positions of substantial shareholders as of June 30, 2024, are recorded in accordance with the Securities and Futures Ordinance[116]. Future Plans and Investments - The company plans to utilize up to HK$280 million of the proceeds for cash management purposes, investing in short-term wealth management products with a maturity not exceeding 12 months[160]. - By the end of 2025, the company aims to enhance cooperation with suppliers and strengthen procurement capabilities, utilizing 35% of the proceeds (approximately HK$250.74 million) for this purpose[158]. - The company intends to expand production capacity and upgrade existing production lines, allocating 30% of the proceeds (approximately HK$214.92 million) for these initiatives by the end of 2025[158]. - The company will expand channel coverage and establish a sales ecosystem, with 10% of the proceeds (approximately HK$71.64 million) dedicated to this effort by the end of 2025[158]. Employee Relations and Development - The company emphasizes employee training and has established partnerships with universities to ensure a steady influx of exceptional graduates[173]. - The company has improved its salary system to maintain market competitiveness, particularly for key positions and core employees[178]. - The company continues to implement performance-linked incentives for frontline employees to enhance motivation and performance[178]. - The company has established collaborative partnerships with universities for talent development, focusing on both internal training and external recruitment[176]. - The company has streamlined employee relations processes to enhance administrative efficiency and service experience[174].

Financial Performance - Revenue for the six months ended June 30, 2024, was RMB 2,620.6 million, representing a 17.7% increase from RMB 2,227.2 million in the same period of 2023[3] - Gross profit increased by 36.2% to RMB 444.3 million, compared to RMB 326.3 million in the prior year[3] - The company reported a profit of RMB 125.8 million for the period, a significant recovery from a loss of RMB 24.3 million in the same period last year[3] - Adjusted net profit rose by 30.6% to RMB 148.9 million, up from RMB 114.0 million in the previous year[3] - Operating profit for the period was RMB 140.9 million, compared to RMB 97.9 million in the same period of 2023[6] - Basic and diluted earnings per share for the period were RMB 0.12, compared to a loss per share of RMB 0.02 in the same period last year[6] - The company recorded a profit before tax of RMB 132.9 million, compared to a loss of RMB 21.3 million in the same period last year[42] - Net profit for the period was RMB 125.8 million, a significant turnaround from a net loss of RMB 24.3 million in the previous year[42] - Adjusted net profit increased by 30.6% to RMB 148.9 million, with an adjusted net profit margin rising from 5.1% to 5.7%[42] Revenue Breakdown - Total revenue from external customers for the six months ended June 30, 2024, was RMB 2,620,565,000, an increase from RMB 2,227,203,000 for the same period in 2023, representing a growth of approximately 17.7%[18] - Revenue from rice products decreased by 1.9% to RMB 1,707.2 million, primarily due to rising raw material costs and a shift in product mix, while high-end rice sales continued to grow[47] - Revenue from grains, beans, and other products surged by 151.9% to RMB 726.3 million, increasing its contribution to total revenue from 12.9% to 27.7%[47] - Online channel revenue accounted for a significant portion of total revenue, increasing by 14.3% to RMB 1,776.3 million, despite a 17.6% decline in revenue from e-commerce platforms[51] - Direct customer revenue rose by 24.0% to RMB 321.7 million, reflecting successful expansion efforts, particularly with restaurant companies[52] Assets and Liabilities - Total assets decreased to RMB 3,557.5 million as of June 30, 2024, from RMB 3,449.3 million at the end of 2023[8] - Current liabilities decreased to RMB 786.9 million from RMB 1,285.5 million at the end of 2023[7] - The company’s cash and cash equivalents decreased to RMB 588.8 million from RMB 1,427.2 million at the end of 2023[7] - The net asset value increased to RMB 3,476.2 million from RMB 3,383.5 million at the end of 2023[8] - The company’s trade and other receivables amounted to RMB 487,177,000 as of June 30, 2024, a slight decrease from RMB 505,192,000 at the end of 2023[31] - Trade payables increased by 3.3% from RMB 137.6 million as of December 31, 2023, to RMB 142.2 million as of June 30, 2024, with turnover days decreasing from 13 to 12 days[79] Expenses - Employee costs increased to RMB 153,952,000 for the six months ended June 30, 2024, from RMB 131,468,000 in 2023, reflecting a rise of approximately 17.1%[22] - The cost of inventory for the six months ended June 30, 2024, was RMB 2,176,281,000, up from RMB 1,900,907,000 in 2023, marking an increase of about 14.5%[23] - Selling and distribution expenses rose by 47.9% to RMB 239.6 million, primarily due to increased commission costs associated with social e-commerce platforms[62] - Administrative expenses decreased from RMB 76.9 million to RMB 73.2 million, mainly due to the absence of listing expenses in the current period[63] Cash Flow and Financing - Cash and cash equivalents decreased by 58.7% from RMB 1,427.2 million as of December 31, 2023, to RMB 588.8 million as of June 30, 2024, primarily due to loan repayments and investment in financial products[81] - Bank loans decreased by 50.5% from RMB 1,011.1 million as of December 31, 2023, to RMB 500.4 million as of June 30, 2024, mainly due to loan repayments[82] - The debt-to-capital ratio decreased from 28.5% as of December 31, 2023, to 20.0% as of June 30, 2024, attributed to loan repayments[83] Corporate Governance and Compliance - The company has complied with all applicable corporate governance codes, except for the deviation regarding the separation of the roles of Chairman and CEO[99] - The audit committee consists of one non-executive director and two independent non-executive directors, ensuring oversight of financial reporting[107] - The company has adhered to all relevant laws and regulations in its operations, with no significant violations reported during the period[101] Future Plans and Investments - The company plans to allocate 35% of the net proceeds (approximately HKD 250.74 million) to enhance supplier collaboration and procurement capabilities, with a target completion by the end of 2025[104] - 30% of the net proceeds (approximately HKD 214.92 million) is designated for capacity expansion and upgrading existing production lines, also expected to be completed by the end of 2025[104] - The company plans to continue expanding its product matrix and sales network, focusing on new product development and market penetration strategies[49] Employee Management - The company has established employment and internship bases with universities to ensure a steady influx of talent, emphasizing internal talent development[111] - The company continues to enhance its compensation system to ensure internal equity while maintaining market competitiveness for key positions and core employees[112] - The company implements performance-based incentives for frontline production staff, aiming for a win-win situation of company growth and employee income increase[112] - The company adheres to national laws and regulations regarding social insurance and housing provident fund contributions, as well as personal income tax withholding for employees[112]

Financial Performance - Revenue for 2023 reached RMB 4,867,026 thousand, an increase of 7.4% from RMB 4,532,920 thousand in 2022[16] - Gross profit for 2023 was RMB 618,716 thousand, a decrease of 20.6% compared to RMB 779,547 thousand in 2022[16] - The net loss for the year 2023 was RMB 64,863 thousand, improving from a loss of RMB 564,219 thousand in 2022[16] - Adjusted net profit for 2023 was RMB 162,225 thousand, down from RMB 364,048 thousand in 2022, representing a decline of 55.4%[16] - The Group's total revenue for 2023 was RMB4,867.0 million, representing a 7.4% increase from RMB4,532.9 million in the previous year[48] - Gross profit decreased by 20.6% from RMB779.5 million to RMB618.7 million, with gross profit margin dropping from 17.2% to 12.7%[48] - Loss before income tax decreased by 89.5% from RMB558.3 million to RMB58.8 million[48] - Net loss decreased by 88.5% from RMB564.2 million to RMB64.9 million, while adjusted net profit decreased by 55.4% from RMB364.0 million to RMB162.2 million[48] Assets and Liabilities - Total assets increased to RMB 4,734,811 thousand in 2023, up from RMB 3,062,552 thousand in 2022, marking a growth of 54.5%[19] - Current assets rose significantly to RMB 3,567,238 thousand in 2023, compared to RMB 2,058,147 thousand in 2022, an increase of 73.1%[19] - Total liabilities decreased to RMB 1,351,301 thousand in 2023 from RMB 3,168,924 thousand in 2022, a reduction of 57.4%[19] - Net assets for 2023 were RMB 3,383,510 thousand, a significant recovery from net liabilities of RMB 106,372 thousand in 2022[19] - Cash and cash equivalents increased significantly from RMB 120.4 million as of December 31, 2022, to RMB 1,427.2 million as of December 31, 2023, primarily due to proceeds from the initial public offering and new bank loans[111] - Net current assets rose by 73.7% from RMB 1,313.3 million as of December 31, 2022, to RMB 2,281.8 million as of December 31, 2023, mainly driven by the increase in cash and cash equivalents[117] - The gearing ratio improved to 28.5% as of December 31, 2023, down from 103.5% as of December 31, 2022, due to the proceeds from the initial public offering[119] Revenue Breakdown - Revenue from rice products increased by 5.8% to RMB3,830.3 million, accounting for 78.7% of total revenue[53] - Revenue from whole grain, bean, and other products rose by 15.0% to RMB601.5 million, increasing its share of total revenue from 11.5% to 12.4%[53] - Revenue from dried food and other products increased by 12.2% to RMB435.2 million, with its percentage of total revenue rising from 8.6% to 8.9%[53] - Revenue from online channels increased by 5.1% from RMB3,144.2 million in 2022 to RMB3,305.6 million in 2023, accounting for the majority of total revenue[61] - Revenue from e-commerce platforms rose by 6.7% from RMB2,657.3 million in 2022 to RMB2,836.5 million in 2023, reflecting increased sales volume from category cultivation and product portfolio expansion[61] - Revenue from online self-operated stores decreased by 3.7% from RMB486.9 million in 2022 to RMB469.1 million in 2023, primarily due to underperformance during the fourth quarter e-commerce festival[61] - Revenue from grocery retail channels fell by 6.0% from RMB696.0 million in 2022 to RMB653.9 million in 2023, attributed to reduced cooperation with certain grocery retail customers[61] - Revenue from direct customers surged by 38.9% from RMB452.0 million in 2022 to RMB628.0 million in 2023, driven by active efforts in direct customer expansion, particularly with catering companies[61] - Revenue from the distribution network increased by 16.1% from RMB240.8 million in 2022 to RMB279.6 million in 2023, due to enhanced brand exposure and cooperation with distributors[61] Operational Strategies - The company plans to focus on market expansion and new product development in the upcoming fiscal year[16] - The company focused on enhancing brand competitiveness and meeting diverse consumer needs through a multi-channel operational model in 2023[27] - Collaborative efforts with emerging channels were reinforced to create a matrix of e-commerce channels integrated with social media platforms[29] - The company aims to promote the integrated construction of the entire supply chain to improve the stability of its industrial system[33] - Future strategies include enriching the brand portfolio, developing differentiated marketing strategies, and expanding into new channels and businesses[45] - The Group is focused on expanding its multichannel sales network and enhancing supply chain management capabilities to meet diverse consumer needs[44] Management and Leadership - Ms. Zhao Wenjun has nearly 20 years of experience in the pantry staple food industry, having served in various roles since June 2005[152] - Mr. Wang, the co-founder and General Manager, has been in the pantry staple food industry for almost 20 years, starting in June 2005[153] - Ms. Zhao Shulan has nearly 10 years of experience in the pantry staple food industry and has held multiple managerial positions since January 2013[158] - Mr. Shu Minghe has nearly 10 years of experience in the pantry staple food industry, joining in January 2013 and serving in various roles[160] - The company has expanded its management team with experienced professionals from the pantry staple food sector, enhancing its operational capabilities[158] - The leadership team includes family members, which may contribute to a cohesive company culture and strategic alignment[160] - The company has a strong educational background among its executives, with degrees from reputable institutions such as Tsinghua University and Harbin Institute of Technology[154][159] - The company is focused on expanding its governance structure with independent directors to enhance transparency and accountability[182][185] - The company has a strong management team with diverse backgrounds in human resources, finance, and operations, enhancing its strategic capabilities[193][195][197] Industry Trends and Market Outlook - The market size of the pre-packaged rice, whole grain, bean, and seed industry is expected to reach RMB 324.9 billion by 2027, with a CAGR of 9.3% from 2022 to 2027[39] - The overall industry trends were closely monitored to adjust business arrangements and enhance brand effect[27] - The Company is focused on expanding its market presence and enhancing its operational efficiency through strategic partnerships and investments[177] - The strategic direction includes a focus on innovation and technology to improve service offerings and operational processes[177]

Financial Performance - The total revenue for the year ended December 31, 2023, was RMB 4,867.0 million, an increase of approximately 7.4% from RMB 4,532.9 million in the previous year[3] - Gross profit decreased by approximately 20.6% to RMB 618.7 million, down from RMB 779.5 million, resulting in a gross margin decline from 17.2% to 12.7%[7] - The net loss for the year was RMB 64.9 million, a significant reduction of 88.5% compared to RMB 564.2 million in the previous year[3] - Adjusted net profit was RMB 162.2 million, a decrease of 55.4% from RMB 364.0 million, with an adjusted net profit margin dropping from 8.0% to 3.3%[7] - Operating profit for the year was RMB 144.1 million, a significant recovery from an operating loss of RMB 375.8 million in 2022[57] - The group reported a pre-tax loss of RMB 58,771 thousand in 2023, a significant improvement from a pre-tax loss of RMB 558,336 thousand in 2022[85] Revenue Breakdown - Revenue from rice products increased by 5.8% to RMB 3,830.3 million, accounting for 78.7% of total revenue[9] - Revenue from grains, beans, and other products rose by 15.0% to RMB 601.5 million, increasing its share of total revenue from 11.5% to 12.4%[9] - Revenue from dried goods and other products increased by 12.2% to RMB 435.2 million, with its share of total revenue rising from 8.6% to 8.9%[9] - Online channels accounted for the majority of revenue, generating RMB 3,305.6 million, up 5.1% from RMB 3,144.2 million in the previous year[15] - Revenue from e-commerce platforms increased by 6.7% to RMB 2,836.5 million, while revenue from online self-operated stores decreased by 3.7% to RMB 469.1 million[15] Cost and Expenses - Sales and distribution expenses rose by 3.0% to RMB 324.1 million due to increased sales volume and promotional activities[21] - Administrative expenses significantly decreased by 82.0% to RMB 154.5 million, primarily due to the absence of share-based compensation in 2023[23] - Financial costs increased by 456.4% to RMB 21.7 million, attributed to higher interest expenses from increased bank and other loan balances[26] - The group's total cost of inventory for 2023 was RMB 4,248,310 thousand, an increase from RMB 3,753,373 thousand in 2022, indicating a rise of approximately 13.2%[84] Assets and Liabilities - Total assets as of December 31, 2023, amounted to RMB 3,567.2 million, up from RMB 2,058.1 million in 2022[59] - Current assets increased to RMB 3,567.2 million, with cash and cash equivalents rising to RMB 1,427.2 million from RMB 120.4 million in the previous year[59] - Bank and other loans increased from RMB 394.9 million in 2022 to RMB 1,011.1 million in 2023, reflecting the company's need for additional financing to support business operations[42] - The company's debt-to-equity ratio improved to 28.5% as of December 31, 2023, down from 103.5% as of December 31, 2022, due to the proceeds from the IPO[43] - Trade receivables decreased from RMB 399.1 million in 2022 to RMB 242.8 million in 2023, with turnover days improving from 28 days to 24 days[34] Inventory Management - Inventory increased by 16.9% from RMB 1,372.7 million as of December 31, 2022, to RMB 1,604.8 million as of December 31, 2023, with inventory turnover days rising from 116 days to 127 days[33] - The inventory balance as of December 31, 2023, was RMB 1,604,828 thousand, up from RMB 1,372,671 thousand in 2022, representing an increase of approximately 16.9%[91] - The company’s raw materials inventory increased to RMB 1,183,751 thousand in 2023 from RMB 838,544 thousand in 2022, reflecting a rise of approximately 41%[91] Corporate Governance and Strategy - The company has complied with all applicable corporate governance code provisions, except for the separation of the roles of Chairman and CEO, which are held by the same individual[110] - The company is focused on enhancing its multi-channel sales network, leveraging both online and offline retail channels to expand market presence[11] - The company aims to enhance its brand matrix and develop differentiated marketing strategies to cater to consumer preferences for quality and convenience[5] - The company is actively involved in strategic planning to enhance shareholder value and operational performance[121] - The company has established a transportation management system (TMS) to optimize logistics[123] Future Outlook - The market for pre-packaged rice, grains, beans, and seeds is expected to grow at a compound annual growth rate of 9.3% from 2022 to 2027, reaching RMB 324.9 billion by 2027[4] - The company plans to strengthen its supply chain management and expand its sales network to meet diverse consumer demands[7] - The company is focused on technological advancements and new product development to drive future growth[120] Shareholder Information - The proposed final dividend for the year ending December 31, 2023, is RMB 0.031 per ordinary share, totaling approximately RMB 33.1 million, which represents 20.4% of the adjusted net profit for the same period[106] - The company will withhold a 10% corporate income tax on dividends distributed to non-resident shareholders[107] - The final dividend proposal is subject to approval at the annual general meeting, expected to be paid around July 19, 2024[106]