Financial Performance - In the fiscal year 2024, Guming Holdings Limited reported revenue of RMB 8.79 billion, representing a year-on-year growth of 14.5%[8] - The net profit for 2024 increased by 36.2% to RMB 1.49 billion, up from RMB 1.10 billion in 2023[8] - The gross profit margin for 2024 was 30.6%, slightly down from 31.3% in 2023[13] - The adjusted profit margin (non-IFRS measure) for 2024 was 17.5%, down from 19.0% in 2023[13] - Revenue increased by 14.5% from RMB 7.6757 billion for the year ended December 31, 2023, to RMB 8.7914 billion for the year ended December 31, 2024[44] - The company's merchandise sales revenue rose by 13.6% from RMB 5.7783 billion in 2023 to RMB 6.5627 billion in 2024, driven by the expansion of the store network and increased demand[44] - Equipment sales revenue increased by 26.8% from RMB 366.4 million in 2023 to RMB 464.8 million in 2024, primarily due to increased sales of coffee machines[44] - Net profit grew by 36.2% from RMB 1.0964 billion for the year ending December 31, 2023, to RMB 1.4932 billion for the year ending December 31, 2024[55] - Adjusted profit increased by 5.7% from RMB 1.459 billion for the year ending December 31, 2023, to RMB 1.542 billion for the year ending December 31, 2024, with a decrease in adjusted profit margin from 19.0% to 17.5%[59] - Adjusted EBITDA rose from RMB 1.894 billion for the year ending December 31, 2023, to RMB 1.932 billion for the year ending December 31, 2024[61] Store Network Expansion - The company expanded its store network to a total of 9,914 locations, with a net increase of 913 stores, reflecting a growth rate of 10.1%[8] - As of December 31, 2024, the company's store network expanded to 9,914 stores, a 10.1% increase from 9,001 stores as of December 31, 2023[18] - The number of stores in second-tier and below cities accounted for 80% of the total store count as of December 31, 2024, up from 79% in 2023[22] - The company experienced a net increase of 254 franchisees, ending 2024 with 4,868 franchisees compared to 4,614 in 2023[26] - The company closed 674 stores in 2024, a significant increase from 265 closures in 2023, due to market slowdown and intensified competition[23] - The company aims to continue expanding its store network and enhancing operational efficiency in the upcoming years[11] - The company plans to continue expanding its store network in 17 provinces and is exploring opportunities in overseas markets[36] - The company has adopted a unique regional encryption strategy for store expansion, focusing resources on building a dense network of stores in targeted provinces[82] Operational Efficiency and Costs - The company aims to enhance operational efficiency and business performance in existing stores while slowing down the opening of new stores[23] - The average single-store GMV decreased to RMB 2,360.7 thousand in 2024 from RMB 2,466.4 thousand in 2023[24] - The company's sales cost increased by 15.8% from RMB 5.2723 billion for the year ending December 31, 2023, to RMB 6.1039 billion for the year ending December 31, 2024[46] - Selling and distribution expenses surged by 42.4% from RMB 336.6 million for the year ending December 31, 2023, to RMB 479.4 million for the year ending December 31, 2024[49] - Administrative expenses rose by 10.1% from RMB 282.8 million for the year ending December 31, 2023, to RMB 311.4 million for the year ending December 31, 2024[50] - R&D expenses increased by 17.0% from RMB 198.7 million for the year ending December 31, 2023, to RMB 232.6 million for the year ending December 31, 2024[51] Assets and Liabilities - The total assets of the company as of December 31, 2024, amounted to RMB 6.87 billion, an increase from RMB 5.15 billion in 2023[15] - The total liabilities increased to RMB 4.76 billion in 2024 from RMB 4.54 billion in 2023[15] - The equity total reached RMB 2.11 billion, a significant improvement from RMB 615.5 million in 2023[15] - Inventory rose by 11.7% from RMB 881.1 million as of December 31, 2023, to RMB 984.2 million as of December 31, 2024, aligning with revenue growth[65] - Trade payables increased from RMB 601.3 million to RMB 697.9 million, attributed to higher procurement amounts, with turnover days rising from 34 to 39 days[69] - The capital debt ratio improved to 23.0% as of December 31, 2024, down from 26.8% as of December 31, 2023[73] Market and Competition - The company is facing significant competition in the ready-to-drink tea market, which may impact market share and profitability if not effectively managed[84] - The overall industry slowdown and intensified competition have led to a deceleration in new store openings and a decline in operational metrics for some stores[83] - The company anticipates stable growth in China's economy and consumer spending, with the ready-to-drink tea market expected to continue expanding in the medium to long term[84] Franchisee Management - The company provides competitive pricing for quality raw materials and covers most warehousing and logistics costs to optimize franchisee profitability[95] - Franchisee management is crucial, as the success and quality of stores largely depend on franchisees' ability to operate according to company standards[96] - The company has established a franchisee committee, the first in the fresh tea beverage industry, to foster close relationships and provide feedback from franchisees[95] - The company actively monitors franchisee operations, including service quality and compliance with quality control and food safety standards, to maintain brand reputation[94] - The company has held an annual national franchisee conference for 11 consecutive years to promote transparent communication and collaboration[95] Product Development and Quality Control - Guming launched over 100 new products in 2024, enhancing its product competitiveness[9] - The introduction of fresh fruit-based tea drinks aims to align with consumer trends towards fresh ingredients, alongside low-sugar options for health-conscious consumers[86] - The company plans to expand its ready-to-drink coffee category to capture more cross-selling opportunities and diversify consumer demand[87] - Strict quality control systems are implemented to mitigate product safety and quality risks across all operational stages, from sourcing to delivery[90] - The effectiveness of the quality control system is critical and depends on various factors, including compliance by franchisees and suppliers[88] Employee Management - As of December 31, 2024, the company employed 2,726 full-time employees, an increase from 2,437 employees as of December 31, 2023[160] - Employee benefit expenses, including salaries and pension contributions, are approximately RMB 700.1 million for the year ending December 31, 2024[160] - The company provides competitive salaries and benefits to attract and retain suitable personnel, with performance bonuses as part of the incentive mechanism[161] - The company encourages career development opportunities for employees, offering training and professional development programs[161] Shareholder Information - The total issued shares of the company as of the last practicable date is 2,378,185,860 shares[166] - Major shareholders collectively hold 1,730,697,672 shares, representing approximately 72.77% of the total issued shares of 2,378,185,860[173] - The company has established a post-IPO share plan approved by shareholders on January 27, 2025, aimed at aligning the interests of selected participants with the company's and shareholders' overall interests[161] Risk Management - The group faced significant risks and uncertainties in the business environment, actively conducting risk assessments to mitigate potential impacts on financial performance[116] - The company has no significant contingent liabilities as of December 31, 2024[75]
古茗控股有限公司(01364) - 2024 - 年度财报