Revenue and Profit Growth - Total revenue for the fiscal year 2024 reached RMB 7,072.56 million, a significant increase from RMB 4,509.85 million in fiscal year 2023[2] - The company's adjusted profit for fiscal year 2024 was RMB 2,180.71 million, up from RMB 1,089.33 million in fiscal year 2023[2] - The company's profit before tax for fiscal year 2024 was RMB 2,022.08 million, compared to RMB 1,172.71 million in fiscal year 2023[2] - The company's profit attributable to owners for fiscal year 2024 was RMB 1,719.50 million, up from RMB 971.29 million in fiscal year 2023[2] - Total net revenue increased by 56.8% from RMB 4.5 billion in FY2023 to RMB 7.1 billion in FY2024[7] - Adjusted net profit for continuing and discontinued operations reached RMB 2.2 billion in FY2024, compared to RMB 1.1 billion in FY2023[7] - Total revenue from continuing operations increased by 68.1% from RMB 3.9 billion in FY2023 to RMB 6.5 billion in FY2024, driven by the multi-platform strategy on Douyin, Taobao, and the company's own app, as well as the membership day promotion launched in December 2023[21] - Net profit from continuing and discontinued operations increased from RMB 971.3 million in FY2023 to RMB 1.7 billion in FY2024, while net profit from continuing operations decreased from RMB 799.2 million to RMB 249.1 million[32] - Total net profit for 2024 was RMB 1,719,508 thousand, up from RMB 971,286 thousand in 2023[55] - Profit from discontinued operations surged to RMB 1.470 billion in 2024, compared to RMB 172.087 million in 2023[71] Gross Merchandise Value (GMV) and E-commerce Performance - Gross Merchandise Value (GMV) for fiscal year 2024 was RMB 14.3 billion, up from RMB 10.0 billion in fiscal year 2023[6] - GMV increased by 43% to RMB 14.3 billion in FY2024, with 8.4% of total GMV coming from the company's app[10] - The company's self-operated products accounted for approximately 40% of total GMV in FY2024, up from 30% in FY2023[8] - Net revenue from self-operated products and live-streaming e-commerce increased by 68.1% from RMB 3.9 billion in FY2023 to RMB 6.5 billion in FY2024[7] - The company's self-operated products and live-streaming e-commerce team reached 1,883 employees, with 1,318 full-time and 565 part-time staff as of May 31, 2024[10] - The company plans to add more than 10 vertical accounts on Douyin and gradually launch more live-streaming channels in the coming years[7] Douyin Platform Performance - The number of followers on Douyin increased to 65.0 million in fiscal year 2024, compared to 41.8 million in fiscal year 2023[6] - The number of paid orders on Douyin rose to 181.1 million in fiscal year 2024, up from 136.3 million in fiscal year 2023[6] - The number of paid orders on Douyin increased from 136.3 million in FY2023 to 181.1 million in FY2024[10] Self-Operated Products and Logistics - The company has developed and launched 488 SKUs of self-operated products since April 2022, expanding from 120 SKUs in FY2023[8] - The company's logistics network achieved 99% coverage for常温发货 and 97% coverage for冷链发货 in FY2024[9] - The company's logistics coverage for ambient and cold chain services reached 99% and 97% nationwide, respectively, ensuring timely and safe delivery of products to consumers[18] - The company's self-operated brand potato chips differentiate themselves in the market by emphasizing health benefits, such as being non-fried, trans-fat-free, and packaged in convenient 20g individual servings[14] - The company's meat products are traceable from upstream farms and slaughterhouses, with all relevant data and documents (e.g., livestock epidemic prevention permits, animal quarantine certificates, factory inspection reports, feed/vaccine/medication records) compliant with regulations[15] - The company's vegetable products undergo batch-by-batch pesticide residue testing to ensure food safety for consumers[15] Financial Metrics and Performance - The company's adjusted EBITDA for fiscal year 2024 was RMB 904.59 million, compared to RMB 1,207.45 million in fiscal year 2023[2] - The company's basic earnings per share for fiscal year 2024 were RMB 1.68, compared to RMB 0.97 in fiscal year 2023[2] - The company's diluted earnings per share for fiscal year 2024 were RMB 1.61, up from RMB 0.91 in fiscal year 2023[2] - The gross profit margin for continuing operations decreased from 38.2% in FY2023 to 25.9% in FY2024, primarily due to the promotion of membership day activities and changes in the product mix, with more sales of lower-margin agricultural products[23] - The company's basic earnings per share from continuing operations were RMB 0.24 in 2024, down from RMB 0.79 in 2023[69] - The company's basic earnings per share from discontinued operations were RMB 1.44 in 2024, up from RMB 0.17 in 2023[71] Education Segment Performance - The company's university education segment revenue decreased from RMB 590.8 million in FY2023 to RMB 523.8 million in FY2024, with paid student enrollments dropping from 581,000 to 334,000[22] - The company's institutional client revenue decreased from RMB 38.2 million in FY2023 to RMB 23.2 million in FY2024[22] - University education division's total revenue cost decreased by 21.5% from RMB 149.9 million in FY2023 to RMB 117.6 million from June 1, 2023, to February 29, 2024, primarily due to reduced employee costs[25] - University education division's gross profit decreased by 7.9% from RMB 440.9 million in FY2023 to RMB 406.2 million from June 1, 2023, to February 29, 2024, with gross margin increasing from 74.6% to 77.5%[25] - Total revenue cost for services provided to institutional clients decreased by 68.9% from RMB 7.7 million in FY2023 to RMB 2.4 million from June 1, 2023, to February 29, 2024, with gross margin increasing from 79.9% to 89.7%[26] Expenses and Costs - Sales and marketing expenses increased by 174.5% from RMB 315.5 million in FY2023 to RMB 866.1 million in FY2024, primarily due to increased employee costs for self-operated products and live streaming business[28] - R&D expenses increased by 101.6% from RMB 65.3 million in FY2023 to RMB 131.6 million in FY2024, mainly due to increased employee costs[28] - Administrative expenses increased by 173.7% from RMB 144.5 million in FY2023 to RMB 395.6 million in FY2024, primarily due to increased employee costs and share-based compensation expenses[29] - Total employee compensation expenses, including share-based compensation, increased by 94.1% year-over-year to RMB 1.4 billion in the fiscal year 2024[42] - Total employee costs rose to RMB 1.221 billion in 2024, compared to RMB 478.104 million in 2023, driven by increases in salaries, benefits, and equity-settled share-based payments[68] Cash Flow and Financial Position - Cash and cash equivalents increased to RMB 2.3 billion as of May 31, 2024, compared to RMB 1.2 billion as of May 31, 2023, with total monetary funds reaching RMB 4.6 billion[36] - Net cash generated from operating activities for the fiscal year 2024 was RMB 856.1 million, with a pre-tax profit of RMB 2 billion adjusted for non-cash items, non-operating items, and working capital changes[38] - Net cash generated from investing activities for the fiscal year 2024 was RMB 202.8 million, primarily due to the sale of financial assets at fair value through profit or loss (RMB 3 billion), withdrawal of fixed deposits (RMB 1.8 billion), and net cash inflow from the sale of the education business (RMB 849.5 million)[39] - Net cash used in financing activities for the fiscal year 2024 was RMB 14.8 million, mainly due to the repayment of lease liabilities (RMB 43.1 million)[40] - Capital expenditures for property and equipment in the fiscal year 2024 were RMB 35.9 million, compared to RMB 12.8 million in the fiscal year 2023[41] - The company had no bank loans or other borrowings during the reporting period and considers its cash and capital resources sufficient for operations and expansion[44] - The company had no significant contingent liabilities as of May 31, 2024[45] - The company did not recommend a final dividend for the fiscal year 2024[49] - Total assets increased to RMB 6,163,887 thousand in 2024 from RMB 3,436,916 thousand in 2023, representing a growth of approximately 79.4%[57] - Cash and cash equivalents surged to RMB 2,262,464 thousand in 2024, up from RMB 1,165,137 thousand in 2023, marking a significant increase of 94.2%[57] - Inventory levels rose sharply to RMB 422,341 thousand in 2024 compared to RMB 140,952 thousand in 2023, indicating a 199.6% increase[57] - Trade and other receivables grew to RMB 893,582 thousand in 2024 from RMB 218,972 thousand in 2023, reflecting a 308.1% increase[57] - The company's equity attributable to owners increased to RMB 4,969,216 thousand in 2024 from RMB 2,803,808 thousand in 2023, showing a 77.2% growth[58] - Non-current liabilities decreased to RMB 58,999 thousand in 2024 from RMB 20,301 thousand in 2023, a reduction of 190.6%[58] Strategic Initiatives and Future Plans - The company plans to expand its offline presence by promoting self-operated products in New Oriental offline outlets, starting with a pilot in Beijing in the second half of 2024 and gradually expanding nationwide[16] - The company will evaluate underperforming self-operated products with low gross margins and make adjustments to optimize performance, potentially discontinuing unprofitable product lines and introducing new products[19] - The company sold its education business on March 1, 2024, as part of a strategic restructuring to focus on its core e-commerce operations[59] - The company operates primarily through contractual arrangements with Beijing Xuncheng and Kuxue Huisi due to foreign ownership restrictions in China's telecommunications sector[60] - The company applied revised International Financial Reporting Standards (IFRS) for the first time in the current year, with no significant impact on financial statements[61] - The company does not expect the application of new and revised IFRS standards to have a material impact on its financial statements in the foreseeable future[62] Other Financial and Operational Highlights - Share of profits from associates turned from a loss of RMB 12.8 million in FY2023 to a profit of RMB 3.8 million in FY2024, mainly due to the turnaround of Beijing Times Cloud Map Books Co., Ltd. and the deconsolidation of Beijing Yuke Future Intelligent Technology Co., Ltd.[30] - Other income, gains, and losses from continuing operations increased by 21.7% from RMB 113.4 million in FY2023 to RMB 138.1 million in FY2024, mainly due to increased bank deposit interest income[27] - The company's government subsidies increased significantly to RMB 53.991 million in 2024, up from RMB 26.388 million in 2023[66] - Interest income from fixed deposits increased to RMB 41.277 million in 2024, up from RMB 20.119 million in 2023[65] - The company's income tax expense for continuing operations decreased to RMB 184.580 million in 2024, down from RMB 257.270 million in 2023[67] - The company's total other income, gains, and losses amounted to RMB 138.077 million in 2024, up from RMB 113.417 million in 2023[65] - The company's total revenue from continuing operations is entirely derived from external customers in China, with no single customer contributing more than 10% of total revenue[64] - Non-current assets: Fair value through profit or loss financial assets - unlisted equity investments decreased to RMB 94,889 thousand in 2024 from RMB 102,576 thousand in 2023[72] - Current assets: Fair value through profit or loss financial assets - wealth management products increased to RMB 1,250,338 thousand in 2024 from RMB 1,037,402 thousand in 2023[72] - The company invested RMB 17,527,000 in Dongfang Zhenxuan (Henan) Food Technology Co., Ltd., acquiring 30% of preferred ordinary shares[72] - Wealth management products purchased from multiple banks have an expected annual return rate ranging from 2.70% to 3.99% in 2024, compared to 2.17% to 3.00% in 2023[73] - The company made purchases from Dongfang Zhenxuan (Henan) amounting to RMB 180,354,000 in 2024, compared to none in 2023[73] - Trade receivables (net of credit loss provisions) decreased to RMB 31,693 thousand in 2024 from RMB 37,927 thousand in 2023[75] - Other receivables increased significantly to RMB 861,889 thousand in 2024 from RMB 181,045 thousand in 2023, primarily due to an increase in receivables from related parties[75] - Contract liabilities related to membership fees and live e-commerce services were RMB 19,513 thousand and RMB 8,391 thousand respectively in 2024, compared to none in 2023[77] - Trade payables increased to RMB 611,886 thousand in 2024 from RMB 335,263 thousand in 2023, with a significant portion aged between 1 to 90 days[78] - The company's trade payables include RMB 19,672,000 in payables to related parties in 2024, compared to RMB 9,140,000 in 2023[78] - The company's board of directors includes executive directors Yu Minhong and Yin Qiang, non-executive director Sun Chang, and independent non-executive directors Lin Zheying, Dong Ruibao, and Kuang Weixin[82]
东方甄选(01797) - 2024 - 年度业绩