Core Viewpoint - The report highlights the financial performance of Foshan Haitian Flavoring Food Co., Ltd. for the first half of 2025, indicating a positive growth trajectory in revenue and profit metrics, alongside a proposed cash dividend distribution to shareholders [1]. Financial Performance - Total assets at the end of the reporting period reached CNY 46.81 billion, an increase of 14.56% compared to the previous year [3]. - Operating revenue for the first half of 2025 was CNY 15.23 billion, reflecting a year-on-year growth of 7.59% [3]. - Total profit amounted to CNY 4.65 billion, which is a 14.11% increase from the same period last year [3]. - Net profit attributable to shareholders was CNY 3.91 billion, representing a growth of 14.11% year-on-year [3]. - The net profit after deducting non-recurring gains and losses was also reported, although specific figures were not provided [3]. - The weighted average return on equity increased to 12.22%, up by 0.37 percentage points from the previous year [3]. - Basic and diluted earnings per share were both CNY 0.70, an increase of 12.90% compared to CNY 0.62 in the previous year [3]. Dividend Distribution - The company plans to distribute a cash dividend of CNY 2.60 per 10 shares (including tax), totaling approximately CNY 1.52 billion, which is about 38.80% of the net profit attributable to shareholders for the first half of 2025 [1].

Core Viewpoint - The company, Foshan Haitian Flavoring and Food Co., Ltd., announced a cash dividend distribution plan for the first half of 2025, proposing a cash dividend of 2.60 RMB per 10 shares (including tax) [1][2]. Summary by Sections Profit Distribution Plan - As of June 30, 2025, the company's unaudited retained earnings amounted to 7,061,467,368.50 RMB. The board of directors resolved to distribute profits based on the total share capital registered on the dividend distribution date, excluding shares in the company's repurchase account [1]. - The total number of shares eligible for the cash dividend distribution is 5,841,535,453 shares, after excluding 10,289,491 shares held in the repurchase account. The total cash dividend to be distributed is 1,518,799,217.78 RMB (including tax), which represents approximately 38.80% of the net profit attributable to shareholders for the first half of 2025 [1]. Decision-Making Process - The company held its annual general meeting on May 9, 2025, where it authorized the board of directors to determine the mid-term dividend plan, ensuring that the necessary conditions and limits for the distribution are met [2]. - The board meeting was convened to review and approve the profit distribution plan, and the board was authorized to decide on the payment date and other necessary matters for the smooth implementation of the mid-term profit distribution [2]. Supervisory Board Opinion - The supervisory board agreed with the profit distribution proposal, considering the long-term interests of the company and its shareholders, and emphasized sharing the operational development results with investors [3].

Meeting Overview - The sixth board meeting of Foshan Haitian Flavoring Food Co., Ltd. was held on August 28, 2025, with all 9 directors present [1][2]. Financial Reporting - The board approved the 2025 semi-annual report and summary, which complies with relevant regulations and guidelines [2][3]. - The report is available on the Shanghai Stock Exchange and Hong Kong Stock Exchange websites [2][3]. Capital and Governance Changes - The board approved a proposal to change the registered capital, cancel the supervisory board, and amend the company's articles of association [3][4]. - The proposal requires submission to the shareholders' meeting for approval [3]. Rule Amendments - Multiple governance documents were revised and approved, including: - Shareholders' meeting rules [3][4] - Board meeting rules [3][4] - Fund management system [4] - External guarantee management system [4] - Independent director work system [4] - Accountant selection system [5][6] - All amendments require submission to the shareholders' meeting for approval [4][5]. Profit Distribution - The board approved a profit distribution plan for the first half of 2025, proposing a cash dividend of 2.60 yuan per 10 shares, totaling approximately 1.52 billion yuan, which is about 38.80% of the net profit attributable to shareholders [9][10]. Employee Stock Ownership Plan - The board approved the draft of the 2025 A-share employee stock ownership plan and its management measures, which will be submitted to the shareholders' meeting for approval [10][11]. Shareholders' Meeting - The board proposed to convene the first extraordinary shareholders' meeting of 2025 [11].

Core Viewpoint - The Supervisory Board of Foshan Haitian Flavoring Food Co., Ltd. has reviewed the employee stock ownership plan for 2025, confirming its compliance with relevant laws and regulations, and highlighting its potential benefits for corporate governance and employee motivation [1]. Summary by Relevant Sections Compliance with Regulations - The employee stock ownership plan aligns with the Company Law, Securities Law, and relevant guidelines, ensuring no harm to the company or shareholders [1]. Voluntary Participation - The plan is based on voluntary participation, with no coercion or forced distribution of shares to employees [1]. Corporate Governance and Development - The plan aims to enhance the company's governance structure and establish a long-term incentive mechanism, which is expected to boost the motivation and creativity of core management and key employees, contributing to the company's sustainable development [1].

Meeting Overview - The sixth meeting of the sixth session of the Supervisory Board of Foshan Haitian Flavoring & Food Co., Ltd. was held on August 14, 2025, with all three supervisors present [1][2]. Financial Reporting - The Supervisory Board approved the 2025 semi-annual report and summary, confirming compliance with relevant regulations and ensuring the information is true, accurate, and complete [1][2]. Profit Distribution - The proposal for the 2025 mid-term profit distribution plan was approved, emphasizing the importance of sharing business development results with investors while considering long-term interests [2][3]. Employee Stock Ownership Plan - The Supervisory Board approved the draft of the 2025 A-share employee stock ownership plan, which will be submitted for shareholder meeting approval [3][4]. Governance Changes - A proposal to abolish the Supervisory Board was approved, allowing the Audit Committee of the Board to assume the responsibilities of the Supervisory Board, aimed at improving corporate governance [4][5].

Market Overview - The Shanghai Composite Index closed at 3857.93 points, above the annual line, with a change of 0.37% [1] - The total trading volume of A-shares reached 28,301.97 billion yuan [1] Stocks Breaking Annual Line - A total of 22 A-shares have surpassed the annual line today, with notable stocks including Guoan Co., Transsion Holdings, and ST Huawen, showing divergence rates of 6.70%, 5.14%, and 4.43% respectively [1] - Stocks with smaller divergence rates that just crossed the annual line include Changjiang Electric, ST Zhongzhuang, and Laobaigan Liquor [1] Top Divergence Rates - The top three stocks with the highest divergence rates are: - Guoan Co. (10.07% increase, 6.70% divergence) - Transsion Holdings (7.17% increase, 5.14% divergence) - ST Huawen (4.86% increase, 4.43% divergence) [1] Additional Stock Performance - Other notable stocks include: - Shenyang Machine Tool (4.49% increase, 3.75% divergence) - Shangong Shenbei (4.20% increase, 3.64% divergence) - ST Boda (4.10% increase, 3.48% divergence) [1]

Group 1 - GIC Private Limited increased its stake in Haitian Flavoring and Food Company Limited (stock code: 03288) by acquiring 456,600 shares at a price of approximately HKD 34.91 per share [1] - The total amount spent on this acquisition was about HKD 15.9386 million [1] - After the purchase, GIC's total shareholding in Haitian Flavoring reached 29.4674 million shares, representing a 10.12% ownership stake [1]

Core Viewpoint - GIC Private Limited has increased its stake in Haitian Flavoring and Food Company Limited, acquiring 456,600 shares at a price of HKD 34.9071 per share, totaling approximately HKD 15.9386 million [1] Company Summary - After the acquisition, GIC Private Limited's total shareholding in Haitian Flavoring and Food Company Limited reached 29,467,400 shares, representing a 10.12% ownership stake [1]

Investment Rating - The investment rating for the company is "Outperform the Market" [5][3][16] Core Views - The company achieved a total revenue of 15.23 billion yuan in the first half of 2025, representing a year-on-year growth of 7.59%. The net profit attributable to shareholders was 3.914 billion yuan, up 13.35% year-on-year [1][7] - The second quarter of 2025 saw a total revenue of 6.915 billion yuan, with a year-on-year increase of 7.00%. The net profit attributable to shareholders reached 1.712 billion yuan, growing 11.57% year-on-year [1][7] - The company has implemented an employee stock ownership plan for 2025, with a total amount of 564 million yuan, and plans to distribute a mid-term cash dividend of 2.60 yuan per 10 shares, totaling 1.52 billion yuan, corresponding to a dividend payout ratio of 39% [2][10][14] Financial Performance Summary - The company’s revenue forecast for 2025-2027 is adjusted to 28.925 billion, 30.942 billion, and 32.891 billion yuan, with year-on-year growth rates of 7.5%, 7.0%, and 6.3% respectively [3][14] - The net profit forecast for the same period is 7.219 billion, 7.888 billion, and 8.615 billion yuan, with year-on-year growth rates of 13.8%, 9.3%, and 9.2% respectively [3][14] - The earnings per share (EPS) are projected to be 1.23, 1.35, and 1.47 yuan for 2025, 2026, and 2027 respectively [3][14] Revenue and Profitability Metrics - The company’s gross margin for the second quarter of 2025 was 40.2%, reflecting a year-on-year increase of 3.9 percentage points [2][8] - The sales and management expense ratios were 7.0% and 2.3% respectively, with slight increases due to higher labor costs [2][8] - The net profit margin for the second quarter was 24.1%, up 1.4 percentage points year-on-year [2][8]

Investment Rating - The report maintains a "Recommended" investment rating for Haitian Flavor Industry Co., Ltd. (603288.SH) with a current stock price of 40.08 yuan [1]. Core Views - The company continues to demonstrate steady growth in performance, with a 7.59% year-on-year increase in revenue to 15.23 billion yuan and a 13.35% increase in net profit to 3.914 billion yuan for the first half of 2025 [4]. - The gross profit margin for the first half of 2025 improved to 40.12%, up 3.26 percentage points from the previous year, attributed to enhanced supply chain management and alleviated raw material cost pressures [7]. - The company is actively expanding its product categories, with soy sauce revenue reaching 7.928 billion yuan (up 9.14%), oyster sauce at 2.502 billion yuan (up 7.74%), and seasoning sauces at 1.626 billion yuan (up 12.01%) [7]. - The company has established a comprehensive sales channel strategy, achieving 13.72 billion yuan in offline sales (up 9.07%) and 0.842 billion yuan in online sales (up 38.97%) in the first half of 2025 [7]. Financial Forecast and Valuation - The company is projected to achieve net profits of 7.067 billion yuan, 7.817 billion yuan, and 8.568 billion yuan for the years 2025 to 2027, respectively, with corresponding EPS of 1.21 yuan, 1.34 yuan, and 1.46 yuan [8]. - The report anticipates a slight upward adjustment in profit forecasts, maintaining a positive outlook on the company's long-term development due to its competitive advantages in supply chain, channel reach, and product offerings [8]. - The estimated P/E ratios for 2025, 2026, and 2027 are 33.2, 30.0, and 27.4, respectively, indicating a favorable valuation trend [8].