Product Development and Innovation - The company launched new products such as spicy Latiao "BADAO PANDA", konjac vegetarian tripe "XIAO MO NV", and spicy crisp Latiao "CUI HUO HUO" in 2023, which gained significant popularity among consumers[4] - The company started the Chinese seasoned flour products (Latiao) industry in 2001 and has since diversified into vegetable products, bean-based products, and others, such as Konjac Shuang and Fengchi Kelp[4] - The company's product portfolio includes popular items like 78° Braised Egg, which complements its core Latiao offerings[4] - The Group launched new products including "BADAO PANDA" in September, "XIAO MO NV" in October, and "CUI HUO HUO" in December, enriching its product matrix[33] - The company launched new products including spicy Latiao "BADAO PANDA", konjac vegetarian tripe "XIAO MO NV", and spicy crisp latiao "CUI HUO HUO" to diversify its product portfolio and enhance category competitiveness[49][50] - "BADAO PANDA" spicy Latiao is inspired by authentic Sichuan cuisine, reflecting the company's commitment to traditional flavors and cultural heritage[50] - "XIAO MO NV" konjac vegetarian tripe features larger, crispier slices (35x35mm) and a unique 2D brand image to appeal to young consumers[51] - The company continues to focus on innovation and a multi-category strategy to meet diversified consumer needs through consumer insights[43] Awards and Recognition - The company won over 30 awards in 2023, including "2023 Vibrant Brands Favored by College Students" and "TopBrand2023 Top 500 Chinese Brands"[5] Sales and Distribution Network - The company expanded its sales and distribution network to include supermarkets, convenience stores, traditional e-commerce, and emerging channels like content and social e-commerce, effectively reaching young consumers[6] - The company's omni-channel strategy includes traditional and emerging e-commerce platforms, ensuring wide exposure to young consumers[6] - The Group strengthened its online and offline omni-channel strategy, embracing opportunities from emerging offline snack specialty retailer channels and online content e-commerce channels[34] - The company strengthened its omni-channel operation and expansion strategies to adapt to the rapid development of new retail channels like O2O and content e-commerce[44][46] - The company collaborated with 1,708 offline distributors and sold products through distributors to 147 national or regional operators for hypermarkets, supermarkets, and chained convenience stores as of December 31, 2023[59][60] - The company expedited the process of embracing emerging channels such as O2O and snack specialty retailers in the second half of 2023, establishing close cooperation with major systems of snack specialty retailers[61] - The company established its presence in major e-commerce platforms, including traditional and emerging content e-commerce platforms, to cover all channels of e-commerce platforms[62] - The company's online models include online direct sales and online distribution, complementing offline channels, and focus on creating topics and increasing interaction with consumers through short videos, internal live streaming, and influencer live streaming[62] - Revenue from offline channels increased by 5.2% from RMB4,145.9 million in 2022 to RMB4,361.2 million in 2023, driven by growth in emerging channels like O2O and snack specialty retailers, partially offset by a decline in traditional offline channels due to reduced consumer flow[65] - Revenue from online channels grew by 5.0% from RMB486.3 million in 2022 to RMB510.4 million in 2023, with online distribution revenue decreasing by 17.2% to RMB195.9 million and online direct sales revenue increasing by 26.0% to RMB314.5 million, reflecting the company's focus on capturing growth opportunities from content e-commerce platforms like Douyin[66] - Overseas revenue from offline distributors increased significantly, contributing RMB97.6 million in 2023 compared to RMB65.5 million in 2022, representing 2.2% of total revenue, driven by active expansion into overseas markets[68][69] - The company's total revenue for 2023 was RMB4,871.7 million, with offline channels contributing 89.5% (RMB4,361.2 million) and online channels contributing 10.5% (RMB510.4 million)[64] - Eastern China remained the largest revenue contributor among domestic regions, generating RMB967.1 million in 2023, up from RMB877.0 million in 2022, and accounting for 22.2% of total revenue[68] Financial Performance - Revenue for 2023 reached RMB 4,871.7 million, a 5.2% increase from 2022[24] - Gross profit for 2023 was RMB 2,322.7 million, with a gross margin of 47.7%, up 5.4 percentage points from 2022[24][26] - Adjusted net profit for 2023 was RMB 970.3 million, a 6.3% increase from 2022[24] - Adjusted EBITDA margin for 2023 improved to 31.2%, up 2.6 percentage points from 2022[26] - Inventory turnover days decreased to 73 days in 2023, down from 82 days in 2022[26] - Trade receivables turnover days improved to 4.4 days in 2023, down from 4.9 days in 2022[26] - Total assets for 2023 increased to RMB 7,053.6 million, up 1.8% from 2022[25] - Net assets for 2023 grew to RMB 5,705.9 million, a 3.3% increase from 2022[25] - The liability-to-asset ratio decreased to 19.1% in 2023, down 1.2 percentage points from 2022[26] - Adjusted return on equity for 2023 was 17.3%, down 2.6 percentage points from 2022[26] - The Group's overall revenue for the year was RMB4,871.7 million, representing a 5.2% increase compared to the previous year[31][32] - Gross profit margin was 47.7%, up 5.4 percentage points from 42.3% in the previous year[31][32] - Net profit was RMB880.4 million, a 481.9% increase compared to the previous year, while adjusted net profit was RMB970.3 million, up 6.3%[31][32] - Total revenue for the year increased by 5.2% to RMB4,871.7 million, driven by growth in emerging channels such as O2O, snack specialty retailers, and content e-commerce platforms[45][46] - Gross profit rose by 18.5% to RMB2,322.7 million, with gross profit margin improving from 42.3% to 47.7% due to higher average selling prices, lower raw material costs, and optimized cost management[45][46] - Net profit surged by 481.9% to RMB880.4 million, primarily due to increased gross profit and the absence of share-based payments related to Pre-IPO investments[45][46] - Adjusted net profit increased by 6.3% to RMB970.3 million, with adjusted net profit margin slightly improving from 19.7% to 19.9%[45][46] - Revenue from seasoned flour products decreased by 6.2% from RMB2,718.6 million in 2022 to RMB2,549.2 million in 2023, accounting for 52.3% of total revenue, down from 58.7% in 2022[54][55] - Revenue from vegetable products increased by 25.1% from RMB1,693.3 million in 2022 to RMB2,118.5 million in 2023, accounting for 43.5% of total revenue, up from 36.6% in 2022[55][56] - Sales volume of seasoned flour products decreased by 17.4% to 124,427.2 tons in 2023, while vegetable products sales volume increased by 31.1% to 71,454.7 tons[58][59] - Revenue from bean-based and other products decreased by 7.4% from RMB220.3 million in 2022 to RMB203.9 million in 2023, accounting for 4.2% of total revenue[54][55] - Revenue increased by 5.2% to RMB4,871.7 million in the current year, driven by growth in emerging channels such as O2O, snack specialty retailers, and content e-commerce platforms[90] - Gross profit rose by 18.5% to RMB2,322.7 million, with gross profit margin increasing by 5.4 percentage points to 47.7% due to higher average selling prices, lower raw material costs, and optimized cost management[91][93] - Distribution and selling expenses increased by 27.4% to RMB806.7 million, accounting for 16.6% of total revenue, driven by higher employee benefits and a 53.6% increase in promotion and advertising expenses[92][94] - Administrative expenses decreased by 4.7% to RMB458.9 million, with the proportion to total revenue dropping from 10.4% to 9.4%[95][101] - Net finance income surged by 204.3% to RMB175.6 million, primarily due to increased bank interest income[98][103] - Income tax expense increased by 52.8% to RMB398.9 million, driven by higher taxable income and increased withholding tax provisions[99][103] - Profit for the year skyrocketed by 481.9% to RMB880.4 million, largely due to the absence of share-based payments related to Pre-IPO investments and higher gross profit[100] - Annual profit increased by 481.9% from RMB 151.3 million in the previous year to RMB 880.4 million in the current year, primarily due to the increase in gross profit and share-based payments related to Pre-IPO investments[104] - Adjusted net profit (Non-IFRS measure) increased by 6.3% from RMB 913.1 million in the previous year to RMB 970.3 million in the current year, with the adjusted net profit margin rising from 19.7% to 19.9%[110] - The company proposed a final dividend of RMB 0.10 per share, totaling approximately RMB 235.1 million, representing 27% of the net profit for the year ended December 31, 2023[110] - A special dividend of RMB 0.11 per share was proposed, totaling approximately RMB 258.6 million, representing 30% of the net profit for the year ended December 31, 2023[110] - Total term deposits, restricted cash, and cash equivalents increased by 19.1% to RMB 4,690.5 million at the end of the current year, compared to RMB 3,939.3 million at the end of the previous year[113] - Borrowings increased from RMB 161.3 million at the end of the previous year to RMB 180.9 million at the end of the current year, primarily for plant construction and machinery purchases[113] - Inventories decreased by 29.9% from RMB599.3 million to RMB419.9 million, with inventory turnover days reduced from 82 to 73 days[115][118] - Trade receivables decreased by 22.3% from RMB66.4 million to RMB51.6 million, with turnover days reduced from 4.9 to 4.4 days[116][119] - Other receivables decreased by 38.0% from RMB62.4 million to RMB38.7 million[116][119] - Prepayments increased by 9.0% from RMB111.2 million to RMB121.2 million[117][119] - Financial assets at fair value through profit or loss decreased by 67.9% from RMB382.4 million to RMB122.8 million[120][125] - Trade payables decreased by 12.1% from RMB187.3 million to RMB164.7 million, with turnover days reduced from 26 to 25 days[121][126] - Contract liabilities and refund liabilities decreased by 8.4% from RMB225.3 million to RMB206.3 million[122][127] - Gearing ratio increased from 2.9% to 3.2%[123][128] - Capital commitments for property, plant, and equipment decreased from RMB79.5 million to RMB49.4 million[131][137] - Pledged land use rights decreased from RMB93.8 million to RMB91.8 million[132][138] Production and Capacity - The company operates multiple production plants in Luohe, Henan Province, including Luohe Pingping Plant, Luohe Weidao Plant, Luohe Weilai Plant, and Luohe Xinglin Plant[10] - The company's total production capacity in 2023 was 339,884.9 tons, with actual production reaching 187,994.0 tons, resulting in a utilization rate of 55.3%, down from 59.2% in 2022[73] - Seasoned flour products accounted for the largest share of production, with a designed capacity of 237,722.4 tons and actual production of 114,791.6 tons in 2023, achieving a utilization rate of 48.3%[73] - Vegetable products saw a utilization rate increase to 72.0% in 2023, up from 64.4% in 2022, with actual production reaching 69,309.0 tons against a designed capacity of 96,228.0 tons[73] - The company operates five production plants in Henan, with the Luohe Xinglin Plant currently undergoing capacity expansion and partially operational as of December 31, 2023[71][72] - Designed production capacity for seasoned flour products decreased in the current year due to production line adjustments, while vegetable products and bean-based products increased due to new production lines at Luohe Xinglin Plant[74][75] - Overall utilization rate decreased to 55.3% in 2023 from 59.2% in 2022, primarily due to a drop in utilization rate of seasoned flour products[76][77] - Luohe Xinglin Plant achieved the highest utilization rate at 93.6% in 2023, up from 90.1% in 2022, driven by higher efficiency and production line shifts[76][77] Corporate Governance and Board Structure - The company's board of directors includes executive directors such as Mr. LIU Weiping (Chairman), Mr. LIU Fuping (Vice Chairman), and Mr. SUN Yinong (Chief Executive Officer), as well as independent non-executive directors like Ms. XU Lili and Mr. ZHANG Bihong[18] - The company's audit committee is chaired by Mr. ZHANG Bihong, with members including Ms. XU Lili and Ms. XING Dongmei[18] - The company's nomination committee is chaired by Mr. LIU Weiping, with members including Ms. XU Lili and Mr. ZHANG Bihong[19] - The company's remuneration committee is chaired by Ms. XING Dongmei, with members including Ms. XU Lili and Mr. CHEN Lin[19] - The company's website is www.weilongshipin.com[18] - The Company emphasizes corporate governance, including a diligent Board of Directors and a robust risk management and internal control system[146] - The Board is responsible for formulating the Company's long-term and short-term strategic direction, including development strategy, major investments, and significant asset acquisitions or disposals[148][149] - Management provides monthly reports to the Board, supported by up-to-date financial data, to ensure informed decision-making[150] - The Board's authorization to management includes daily production, management, and operational decisions, but excludes major decisions and key personnel appointments[151] - The company's Board consists of nine Directors, including six executive Directors and three independent non-executive Directors, ensuring a balance of skills and experience[153][157] - The Board complies with the Listing Rules by having at least three independent non-executive Directors, with one possessing appropriate professional qualifications or financial expertise[154][157] - The Board includes two female members, accounting for 22.22% of the total Directors, aligning with gender diversity requirements[160][162] - The company's employees (including executive Directors and senior management) achieved gender diversity with 42.7% male and 57.3% female employees as of December 31, 2023[163][166] - The roles of Chairman and Chief Executive Officer are separated, with Mr. LIU Weiping as Chairman and Mr. SUN Yinong as CEO, ensuring a balance of power and authority[159][161] - The company has adopted a Board diversity policy, selecting candidates based on gender, age, cultural background, industry experience, and other factors[160][162] - The company has made appropriate insurance arrangements for Directors regarding any legal proceedings[158][161] - The Board is responsible for developing and reviewing corporate governance policies, monitoring compliance, and ensuring adherence to the Corporate Governance Code[164][165] - The Board reviewed and ensured compliance with the Corporate Governance Code and disclosed requirements in the Corporate Governance Report[167] - All Directors participated in training courses or reading materials on corporate governance and related topics, with records provided to the Company[169] - The Board held four meetings and one general meeting in 2023, with all Directors attending all meetings[174] - The Audit Committee comprises three independent non-executive Directors and oversees financial policies, risk management, and internal controls[177] - The Board adopted a policy on seeking independent professional advice by Directors on March 23, 2023, and will review its implementation annually[168] - The Company has mechanisms in place for Directors to seek independent professional advice to ensure access to independent views[168] - The Board is responsible for leadership, strategic decisions, and maintaining effective risk management and internal control systems[175] - The Chairman held one meeting with independent non-executive Directors without the attendance of other Directors in 2023[176] - The Audit Committee supervises the financial activities, internal audit, and external accounting firm's work[177] - The Board has three committees: Audit, Nomination, and Remuneration, each with specific terms of reference[172] - The Audit Committee held four meetings in 2023, exceeding the minimum requirement of two meetings per year as stipulated by the Corporate Governance Code[179] - The Audit Committee reviewed the company's annual results for 2023 and confirmed compliance with all applicable accounting standards and regulations, with sufficient disclosures made[180] - The Audit Committee was satisfied with the effectiveness and sufficiency of the company's internal control mechanisms, including financial, operational, and compliance controls, as well as risk management

卫龙的增长经不起细看 作者丨侯书青 思维财经&投资者网 出品丨ID：touzizhebao 单看卫龙美味(下称"卫龙"，09985.HK)2023年财报中的主要财务指标，营收、净利润都有所增长，但当我们将目光放到公司业务层面，在其线下货架上，就 会发现昔日的"辣条王者"，如今的处境难言顺利。与众多竞争对手相比，卫龙困于"辣条"太久了。 大多数时候，市场的眼光都是雪亮的，这份财报虽然没有给卫龙的股价带来与净利润增速相匹配的增长，却为公司管理层带来了分红的底气：2023年公司的 总派息比率高达90%，其中有超过8成分红落入实控人刘福平、刘卫平的口袋。 卫龙能取得今天的行业地位，与它率先解决目标消费者的"食安焦虑"、出色的营销策略有莫大的关系。但这些终究难以为公司建立起坚固的护城河，拳头产 品够硬固然重要，但再硬的拳头，也难以改变"消费者喜欢新鲜感，且始终拥有选择权"的事实。 辣条不好卖了？ 看完卫龙的2023年财报，最令人意想不到的发现是：这么有名的辣条，居然不好卖了。 卫龙2023年全年实现总收入48.72亿元，同比增长5.2%，年内净利润同比增长了481.9%。公司在年报中解释称，公司净利润大幅增长主要系毛利 ...

Core Viewpoint - The price of Wei Long's spicy strips has surpassed that of pork, raising public concern about the increasing cost of the product amid declining sales and production capacity utilization [1][2]. Financial Performance - In 2023, Wei Long reported revenue of 4.872 billion RMB, a year-on-year increase of 5.2%, and a net profit of 880 million RMB, which represents a significant growth of 481.9% [1]. - The gross profit for the year was 1.96 billion RMB, with a gross margin of 47.7%, up 5.4 percentage points from the previous year [1][6]. - The increase in revenue was attributed to new sales channels, while the decline in traditional channels partially offset this growth [1]. Product Pricing and Sales - The average selling price of Wei Long's spicy strips rose from 18.1 RMB/kg in 2022 to 20.5 RMB/kg in 2023, making it more expensive than pork, which averaged 20.46 RMB/kg [2][7]. - The sales volume of spicy strips decreased by 17.4% to 124,427.2 tons, equating to a drop of 26,100 tons [6][8]. Market Challenges - Several brokerage firms have downgraded their profit forecasts for Wei Long due to weak demand for spicy strips, with estimates for 2024 and 2025 net profits reduced by 10% and 6%, respectively [3][4]. - The company's production capacity utilization for spicy strips fell to 48.3% in 2023 from 57.1% in 2022, indicating underutilization of resources [8][9]. Strategic Positioning - Wei Long has been removed from the Hong Kong Stock Connect list, which may impact its liquidity and investor confidence [1][4]. - The company is focusing on diversifying its product offerings, with vegetable products seeing a revenue increase of 25.1% in 2023, now accounting for 43.5% of total revenue [5][6].

Investment Rating - The report assigns a "Buy" rating for the company with a target price of HKD 6.85, based on a current price of HKD 5.62 [1][3]. Core Insights - The company reported a revenue of CNY 4.87 billion for 2023, a year-on-year increase of 5.2%, and a net profit of CNY 880 million, reflecting a significant year-on-year growth of 481.9% [2][13]. - The growth in vegetable products is notable, with a revenue increase of 25.1%, while the sales of seasoned noodle products faced pressure, declining by 6.2% [2][15]. - The company is actively exploring new channels, particularly in the snack wholesale sector, and has accelerated its product launches to seek new growth opportunities [3][28]. Revenue and Profitability - The company's revenue structure shows a gradual balance between seasoned noodle products and vegetable products, with the latter's revenue share increasing significantly [2][13]. - The gross profit margin improved to 47.7%, up by 5.4 percentage points year-on-year, driven by lower raw material costs and an increase in high-margin vegetable products [18][19]. - The adjusted net profit margin was 19.9%, reflecting a slight increase of 0.2 percentage points year-on-year [18][19]. Product Performance - For 2023, the revenue from seasoned noodle products was CNY 2.55 billion, while vegetable products generated CNY 2.12 billion [2][15]. - The sales volume for seasoned noodle products decreased by 17.4%, while vegetable products saw a 31.1% increase in sales volume [15][18]. - The company has optimized its product structure, leading to an increase in average prices for seasoned noodle products despite a decline in sales volume [15][18]. Market Position and Strategy - The company holds a leading position in the spicy snack market, with a market share of 6.2% as of 2022, significantly outperforming its closest competitors [9][31]. - The company is focusing on enhancing its presence in both domestic and overseas markets, with overseas revenue growing by 49.1% [19][21]. - The company plans to increase its revenue contribution from new product launches and snack wholesale channels, aiming for a double-digit revenue share from these segments by 2024 [3][28]. Financial Forecast - The forecast for net profit is CNY 1.05 billion for 2024, CNY 1.22 billion for 2025, and CNY 1.41 billion for 2026, with corresponding EPS of CNY 0.45, CNY 0.52, and CNY 0.60 [3][28]. - The company is expected to maintain a gross profit margin of around 48% to 49% over the next few years, with vegetable products continuing to drive profitability [28][29].

股 票 研 究 [Table_industryInfo] 食品饮料 [ Table_Main[卫I Tnaf 龙bol]e 美_Ti味tle]（ 9985） [评Tab级le_：Inv est] 增持 当前价格（港元）： 5.68 业绩符合预期，新品开拓加速 2024.03.25 海 [ 交Ta易bl数e_M据a rket] 外 訾猛(分析师) 庞瑜泽(分析师) 陈力宇(分析师) 52周内股价区间（港元） 4.81-11.64 当前股本（百万股） 2,351 公 021-38676442 021-38031037 021-38677618 当前市值（百万港元） 13,355 司 zimeng@gtjas.com pangyuze028741@gtjas.com chenliyu@gtjas.com 证书编号 S0880513120002 S0880524010003 S0880522090005 （ [ Table_PicQuote] 中 本报告导读： 52周内股价走势图 国 2023年营收稳增、盈利提升明显，公司加强品牌建设、新品投入和渠道多元化，持续 卫龙美味 恒生指数 巩固细分龙头优势，有望进一步增强竞 ...

Investment Rating - The report maintains an "OUTPERFORM" rating for Weilong Delicious Global Holdings [3][6][9] Core Insights - The company's 2023 performance met market expectations, with revenue of 4.87 billion yuan, a year-on-year increase of 5.2%, and an adjusted net profit of 970 million yuan, a year-on-year increase of 6.3% [8][9] - The company significantly increased its dividend payout ratio from 30% in 2022 to 60% in 2023, with a total dividend distribution of 776 million yuan, representing nearly 90% of the net profit attributable to shareholders for the year [4][5] - The company is expected to launch new cross-category products in 2024, which may boost revenue growth [4] Financial Performance Summary - For 2023, the company achieved revenue of 48.72 billion yuan, with a net profit of 8.80 billion yuan, reflecting a substantial increase of 481.9% year-on-year [5][8] - The company forecasts revenue growth of 14.3% in 2024, reaching 55.7 billion yuan, and a net profit of 10.0 billion yuan, also reflecting a 14.3% increase [5][9] - The expected EPS for 2024-2026 is projected to be 0.43, 0.49, and 0.55 yuan respectively [5][9] Market Position and Valuation - The target price for Weilong is set at HKD 9.29, based on a 20x PE ratio for 2024, indicating a potential upside from the current price of HKD 5.59 [3][5][9] - The company has a market capitalization of HKD 13.14 billion (approximately USD 1.68 billion) [3][4]

2024年3月22日 公司研究 全年业绩平稳增长，建议关注新品新渠道发展 ——卫龙美味（9985.HK）2023 年年报点评 要点 增持（维持） 事件：卫龙发布2023年年报业绩，23年实现营业收入48.7亿元，同比+5.2%；归 当前价：5.68港元 母净利润8.8亿元，同比+481.9%。其中，23H2实现营业收入25亿元，同比+6.0%； 归母净利润4.3亿元，同比+5.1%。 作者 辣条需求仍较疲软，蔬菜制品保持较快增长。 分析师：陈彦彤 执业证书编号：S0930518070002 1）分产品来看：23年调味面制品/蔬菜制品/豆制品及其他产品实现收入 021-52523689 25.49/21.19/2.04亿元，同比-6.23%/+25.11%/-7.43%。调味面制品收入同比下滑 chenyt@ebscn.com 主要系需求疲软下线下传统渠道流量下滑；蔬菜制品收入同比提升较快主要系公司 不断迭代升级该产品以及扩充产能保障产品供应。 分析师：汪航宇 执业证书编号：S0930523070002 2）分渠道来看，23年线下/线上渠道实现收入43.61/5.10亿元，同比 021-52523174 wan ...

业绩简评 3月 22日公司发布业绩，23年实现营收48.7 亿元，同比+5.2%； 实现归母净利润8.8 亿元，同比+481.9%；经调整后净利润9.7 亿 元，同比+6.3%。其中，23H2 实现营收25.4 亿元，同比+7.3%；实 现归母净利润4.3 亿元，同比+5.1%；经调整后净利润4.7 亿元， 同比-3.0%。 经营分析 菜制品增长亮眼，全面拥抱新渠道。1）分产品看，23 年面制品/ 菜制品/豆制品及其他销售额分别为 25.5/21.2/2.0 亿元，同比 -6.2%/+25.1%/-7.4%。受提价及主动优化产品结构影响，面制品 销量依旧承压，23 年量-17%，价+13%。菜制品中魔芋爽保持高增， 带动 H2 销量恢复，全年量+31%，价-5%，其他品类中豆皮下滑较 港币(元) 成交金额(百万元) 多。2）23 年线下/线上渠道销售额同比均增长5%。其中线上新增 14.00 20 18 内容电商渠道，线下合作头部零食专营店（截至2023 年底覆盖门 12.00 16 14 店数2万+家）、O2O 等新兴渠道。传统渠道承压系人流下滑及公司 10.00 12 10 主动调整产品规格，但网点质量进 ...

Financial Performance - Total revenue for the year ended December 31, 2023, was RMB 4,871.7 million, an increase of 5.2% year-on-year[2] - Gross profit for the same period was RMB 2,322.7 million, reflecting an 18.5% year-on-year increase[2] - Net profit for the year was RMB 880.4 million, a significant increase of 481.9% compared to the previous year[2] - Adjusted net profit was RMB 970.3 million, up 6.3% year-on-year[2] - Basic earnings per share increased to RMB 0.38, representing a 442.9% rise year-on-year[2] - The group's total revenue for the year ended December 31, 2023, was RMB 4,871,666 thousand, an increase from RMB 4,632,221 thousand in 2022, representing a growth of approximately 5.2%[20] - The group's gross profit for the year was RMB 2,322,683 thousand, up from RMB 2,248,000 thousand in the previous year, reflecting an increase of approximately 3.3%[18] - The profit attributable to equity holders for 2023 was RMB 880,354,000, a significant increase from RMB 151,297,000 in 2022, representing a growth of approximately 482%[35] - Adjusted net profit (non-IFRS measure) rose by 6.3% to RMB 970.3 million from RMB 913.1 million, with an adjusted net profit margin increasing to 19.9% from 19.7%[79] Dividends - The company proposed a final dividend of RMB 0.10 per ordinary share and a special dividend of RMB 0.11 per share[2] - The board proposed a final dividend of RMB 0.10 per share, totaling approximately RMB 235.1 million, which is 27% of the annual net profit[80] - A special dividend of RMB 0.11 per share is also proposed, totaling approximately RMB 258.6 million, which is 30% of the annual net profit[80] - The company’s dividend policy states that at least 25% of distributable profits will be distributed to shareholders, subject to board discretion and shareholder approval[105] Assets and Liabilities - Total assets as of December 31, 2023, amounted to RMB 7,053.5 million, compared to RMB 6,930.3 million in 2022[7] - Non-current assets totaled RMB 4,178.9 million, up from RMB 3,373.1 million in the previous year[7] - Current assets decreased to RMB 2,874.7 million from RMB 3,557.2 million in 2022[7] - Non-current liabilities increased to RMB 439,659 thousand in 2023 from RMB 405,677 thousand in 2022, representing an increase of approximately 8.3%[8] - Current liabilities decreased to RMB 908,017 thousand in 2023 from RMB 1,000,246 thousand in 2022, a reduction of about 9.2%[8] - Total liabilities decreased to RMB 1,347,676 thousand in 2023 from RMB 1,405,923 thousand in 2022, reflecting a decline of approximately 4.1%[8] - Net assets increased to RMB 5,705,870 thousand in 2023 from RMB 5,524,412 thousand in 2022, marking an increase of around 3.3%[8] - Total equity remained stable at RMB 5,705,870 thousand in both 2023 and 2022, indicating no change year-over-year[8] Revenue Sources - Revenue from the Chinese market was RMB 4,774,043 thousand in 2023, compared to RMB 4,566,747 thousand in 2022, indicating a growth of about 4.5%[20] - The group's revenue from overseas customers was RMB 97,623 thousand in 2023, compared to RMB 65,474 thousand in 2022, marking an increase of approximately 48.9%[20] - Revenue from seasoning noodle products decreased by 6.2% from RMB 2,718.6 million in 2022 to RMB 2,549.2 million in 2023, accounting for 52.3% of total revenue, down from 58.7%[54] - Revenue from vegetable products increased by 25.1% from RMB 1,693.3 million in 2022 to RMB 2,118.5 million in 2023, representing 43.5% of total revenue, up from 36.6%[55] - Revenue from bean products and other products decreased by 7.4% from RMB 220.3 million in 2022 to RMB 203.9 million in 2023, accounting for 4.2% of total revenue, slightly down from 4.7%[55] Operational Efficiency - The company reported a significant increase in operating profit to RMB 1,103.7 million, compared to RMB 354.7 million in the previous year[5] - The total cost of sales, distribution, and administrative expenses amounted to RMB 3,814,619,000 in 2023, slightly up from RMB 3,787,603,000 in 2022, indicating a marginal increase of about 0.7%[26] - Employee benefits expenses increased to RMB 985,388,000 in 2023, up from RMB 852,998,000 in 2022, reflecting a growth of approximately 15.5%[26] - The company has optimized its production processes and cost management, contributing to improved gross margins and profitability[71] - The company is actively pursuing supply chain optimization and collaboration to enhance overall operational effectiveness[69] Market and Product Development - The company launched several new products, including "霸道熊猫" in September, "小魔女" in October, and "脆火火" in December, expanding its product matrix[44] - The company is actively expanding its online and offline channels, focusing on emerging snack retail channels and online content e-commerce opportunities[45] - The company aims to strengthen product innovation and brand development while embracing new sales channels to meet evolving consumer demands[46] - The company emphasized a multi-category strategy, focusing on flavor noodle products, vegetable products, and bean products[51] - The new product "Badao Xiongmao" reflects insights into market demand and aims to innovate traditional cuisine[51] Compliance and Governance - The company has adhered to all applicable corporate governance codes as of December 31, 2023[111] - All directors confirmed compliance with the standard code of conduct for securities trading as of December 31, 2023[112] - The audit committee, consisting of three independent non-executive directors, has reviewed the financial results for the year ending December 31, 2023, ensuring compliance with applicable accounting principles[109] - Ernst & Young has verified the consolidated financial statements for the year ending December 31, 2023, confirming consistency with the group's financial reports[110] Future Outlook - The group plans to strengthen brand building and enhance brand recognition, focusing on consumer insights and experiences[101] - The group aims to enhance digital construction and R&D capabilities, with expected investments of HKD 72.3 million and HKD 90.3 million respectively over the next 3-5 years[95] - The company will continue to strengthen its online and offline channel development strategy, focusing on snack retail channels and the rapid rise of Douyin e-commerce[102]

Investment Rating - The report initiates coverage with a "Buy" rating for the company [2][11]. Core Views - The introduction of new products is expected to drive revenue growth and optimize the company's structure, alongside channel expansion and supply chain strengthening, indicating further release of growth potential [2]. - The company is positioned as a leading player in the spicy snack segment, with significant growth in its vegetable product line, which achieved a CAGR of 54.4% from 2018 to 2022 [2][17]. - The company has successfully launched differentiated new products in 2023, receiving positive market feedback, which is anticipated to become a new driver for revenue growth [2][12]. Summary by Sections Earnings Forecast and Investment Advice - The company is expected to achieve EPS of 0.40, 0.49, and 0.59 RMB for 2023-2025, reflecting year-on-year growth of +523.3%, +22.0%, and +20.6% respectively [2][11]. - The target price is set at 7.84 RMB, equivalent to 8.52 HKD, based on FCFF and PE valuation methods [2][11]. Company Overview - Established in 2001, the company has become a leader in the spicy snack food sector, primarily targeting consumers under 35 years old [17]. - The company has a strong market share in both the seasoning noodle products and spicy vegetable snacks categories [17]. Product and Channel Expansion - The company is expanding its product matrix by introducing new products and exploring new categories, which is expected to drive growth [2][12]. - The sales strategy has shifted from reliance on traditional channels to a diversified approach, enhancing coverage and efficiency through modern channels and online platforms [2][12]. Brand and Supply Chain Strengthening - The company emphasizes brand building and has invested in brand marketing, aiming for a high-quality, youthful brand positioning [2][12]. - Continuous investment in production capacity and supply chain optimization is expected to enhance operational efficiency [2][12]. Financial Performance - The company’s revenue is projected to grow from 49.38 billion RMB in 2023 to 64.19 billion RMB in 2025, with year-on-year growth rates of +6.6%, +13.9%, and +14.1% respectively [12][13]. - The gross margin is expected to improve, reaching 46.0% by 2025, driven by price increases and product structure optimization [13][26].