Financial Performance - Total revenue for the year ended December 31, 2024, was RMB 13,051.7 million, a decrease of 6.3% compared to RMB 13,926.5 million in 2023[7] - Adjusted comparable EBITDA for 2024 was RMB 1,952.3 million, down 11.9% from RMB 2,215.5 million in 2023, with an adjusted EBITDA margin of 15.0%, a decline of 0.9 percentage points[7] - The company reported a net loss of RMB 53.7 million for 2024, a significant decline of 109.2% compared to a net profit of RMB 581.8 million in 2023[7] - Gross profit for the year ended December 31, 2024, was RMB 7,915.5 million, a decrease of 4.6% from the previous year, while the gross margin slightly increased from 59.6% to 60.6%[54] - The total EBITDA for the year ended December 31, 2024, was RMB 1,405.8 million, down 29.2% from RMB 1,984.9 million in the previous year[63] - The adjusted comparable net profit for the year ended December 31, 2024, was RMB 541.2 million, a decrease from RMB 778.3 million in 2023[72] Revenue Breakdown - Revenue from nutritional supplements accounted for 67.7% of total revenue, with double-digit growth in vitamins, herbal, and mineral supplements, as well as pet supplements[17] - The infant formula segment faced challenges but continued to expand market share, contributing to the overall revenue despite a contraction in the ultra-premium segment[17] - Revenue from North America represented 12.4% of total revenue, supported by successful distribution expansion in the pet nutrition segment[17] - Revenue from the adult nutrition and care products segment in mainland China grew by 6.9% year-on-year, contributing 64.7% to the total revenue of this segment[44] - The revenue from the infant nutrition and care products segment was RMB 4,003.9 million, down 27.3% year-on-year, primarily due to a decline in infant formula sales[46] - Revenue from the pet nutrition and care products segment in mainland China decreased by 14.8% to RMB 345.8 million, attributed to product portfolio upgrades and channel optimization[47] Market Performance - The adult nutrition and care products business recorded high single-digit growth, driven by continuous product innovation and demand in core markets[19] - The infant nutrition and care products segment faced challenges, with the ultra-premium infant formula market contracting by 17.7% in 2024, although Biostime's market share increased from 12.4% to 13.3%[26] - Swisse maintained its position as the number one brand in the online vitamin, herbal, and mineral supplement market in mainland China for 2024[22] - The company achieved significant growth in various Asian markets, including Hong Kong, Thailand, and Malaysia, with Swisse being awarded the Trusted Brand (Gold) in Singapore[25] - Swisse's gummy series holds a 17.2% market share in Australia, ranking second in the vitamin, herbal, and mineral supplement market[22] Dividends and Financial Strategy - The company announced a total dividend of HKD 0.35 per share for the year, reflecting a cautious approach to leverage reduction[18] - The board recommends a final dividend of HKD 0.05 per share, leading to a total annual dividend of HKD 0.35 per share, which represents approximately 37.6% of the adjusted comparable net profit for the year ended December 31, 2024[82] - The company aims to further reduce leverage ratios and strengthen financial stability in the coming years[36] Corporate Governance - The company emphasizes high standards of corporate governance to enhance shareholder value and accountability[102] - The company has complied with all provisions of the corporate governance code as of December 31, 2024[102] - The board consists of nine members, including two executive directors, four non-executive directors, and three independent non-executive directors[110] - The board has established four committees: Nomination Committee, Audit Committee, Remuneration Committee, and Environmental, Social and Governance Committee[110] - The company has established a code of conduct for directors regarding securities trading, ensuring compliance with regulatory standards[104] Risk Management - The company has established a robust risk management framework based on the COSO risk management framework and ISO 31000, which defines roles, responsibilities, and processes for risk management[177] - The board of directors is responsible for overseeing the risk management and internal control systems, ensuring they are effective in managing risks to achieve business objectives[175] - The audit committee assists the board in supervising the design, implementation, and monitoring of the risk management and internal control systems[176] Management Team - The management team has extensive experience, with the chairman having over 25 years in the biotechnology industry[83] - The CFO has over 25 years of financial management experience, previously serving as the global VP and CFO for Henkel AG & Co. KGaA[84] - Dr. Zhang, a non-executive director, has over 20 years of experience in the biotechnology industry, previously serving as CTO and GM of various subsidiaries[86] Shareholder Engagement - The company has established a shareholder communication policy to facilitate effective communication with shareholders and encourage active engagement[195] - The company participated in 16 investment seminars and non-deal roadshows, conducting approximately 500 individual and group meetings with analysts, institutional investors, and fund managers during the year ending December 31, 2024[189]
H&H国际控股(01112) - 2024 - 年度财报