Revenue and Profit Performance - Total revenue for the first half of 2023 was RMB 2,327.3 million, a year-on-year increase of 3.0%[2] - Gross profit for the first half of 2023 was RMB 1,106.2 million, a year-on-year increase of 28.4%[2] - Gross profit margin for the first half of 2023 was 47.5%, an increase of 9.4 percentage points year-on-year[2] - Net profit for the first half of 2023 was RMB 447.1 million, a year-on-year increase of 271.4%[2] - Adjusted net profit for the first half of 2023 was RMB 497.0 million, a year-on-year increase of 17.0%[2] - Basic adjusted earnings per share for the first half of 2023 were RMB 0.22, a year-on-year increase of 3.9%[2] - Operating profit for the first half of 2023 was RMB 561.2 million, compared to an operating loss of RMB 167.0 million in the same period last year[5] - Revenue for the six months ended June 30, 2023, was RMB 2,327,279 thousand, compared to RMB 2,260,529 thousand in the same period in 2022, representing a 2.95% increase[13] - Gross profit for the six months ended June 30, 2023, was RMB 1,106,202 thousand, up 28.4% from RMB 861,548 thousand in the same period in 2022[13] - The company's basic earnings per share for the six months ended June 30, 2023, was RMB 0.19, compared to a loss of RMB 0.13 per share in the same period in 2022[21] - The company's diluted earnings per share for the six months ended June 30, 2023, was RMB 0.19, compared to a loss of RMB 0.13 per share in the same period in 2022[23] - Revenue for the reporting period was RMB 2,327.3 million, a 3.0% increase compared to RMB 2,260.5 million in the same period last year[53] - Gross profit increased by 28.4% to RMB 1,106.2 million, with gross margin rising 9.4 percentage points to 47.5%[53] - The company's profit for the period increased from a loss of RMB 260.8 million in the first half of the previous year to a profit of RMB 447.1 million, primarily due to the increase in gross profit and the elimination of share-based payments related to pre-IPO investments[60] - Adjusted net profit (non-IFRS) increased by 17.0% from RMB 424.9 million in the first half of the previous year to RMB 497.0 million, driven by higher gross profit, with the adjusted net profit margin (non-IFRS) rising from 18.8% to 21.4%[63] Dividend and Shareholder Returns - The company proposed an interim dividend of RMB 0.12 per ordinary share[2] - The company declared a final and special dividend of RMB 564,276 thousand for the six months ended June 30, 2023, compared to no dividend declared in the same period in 2022[24] - The company declared a final dividend of RMB 0.12 per share for the year ended December 31, 2022, totaling RMB 282,138,000, and a special dividend of RMB 0.12 per share, also totaling RMB 282,138,000[25] - An interim dividend of RMB 0.12 per share was declared for the six months ended June 30, 2023, amounting to approximately RMB 282,138,000, representing about 60% of the group's net profit for the period[25][29] - The company declared an interim dividend of RMB 0.12 per share (tax inclusive), totaling approximately RMB 282.1 million, representing 60% of the net profit for the six months ended June 30, 2023[64] - The company declared an interim dividend of RMB 0.12 per share, totaling approximately RMB 282.1 million, payable around October 12, 2023[88] - The company will suspend share transfer registration from September 18 to September 20, 2023, to ensure eligible shareholders receive the interim dividend[89] Financial Position and Assets - Total assets as of June 30, 2023, were RMB 7,247.5 million, an increase from RMB 6,930.3 million as of December 31, 2022[7] - Cash and cash equivalents as of June 30, 2023, were RMB 774.5 million, a decrease from RMB 1,314.5 million as of December 31, 2022[7] - Total liabilities increased to RMB 1,722,070 thousand as of June 30, 2023, up from RMB 1,405,923 thousand as of December 31, 2022[8] - Non-current liabilities rose to RMB 433,523 thousand, compared to RMB 405,677 thousand at the end of 2022[8] - Current liabilities surged to RMB 1,288,547 thousand, a significant increase from RMB 1,000,246 thousand at the end of 2022[8] - Trade and other payables under current liabilities jumped to RMB 1,086,097 thousand, up from RMB 689,732 thousand in December 2022[8] - The company's net asset value remained stable at RMB 5,525,440 thousand as of June 30, 2023, compared to RMB 5,524,412 thousand at the end of 2022[8] - Retained earnings increased to RMB 2,745,318 thousand, up from RMB 2,298,248 thousand at the end of 2022[8] - Cash and cash equivalents, including fixed deposits with initial terms of over three months, increased by 19.5% to RMB 4,706.5 million as of June 30, 2023, compared to RMB 3,939.3 million at the end of the previous year, mainly due to cash inflows from operating activities[65] - Inventory decreased by 27.7% from RMB 599.3 million at the end of the previous year to RMB 433.5 million as of June 30, 2023, with inventory turnover days decreasing from 82 days to 77 days[66] - Trade receivables decreased by 48.0% from RMB 66.4 million at the end of the previous year to RMB 34.5 million as of June 30, 2023, with trade receivables turnover days decreasing from 4.9 days to 3.9 days[67] - Other receivables decreased by 34.2% from RMB 62.4 million at the end of the previous year to RMB 41.0 million as of June 30, 2023, mainly due to a reduction in receivables from local governments[67] - Prepayments decreased by 18.2% from RMB 111.2 million at the end of the previous year to RMB 90.9 million as of June 30, 2023, primarily due to a decrease in deductible VAT input tax[67] - Financial assets measured at fair value through profit or loss decreased by 46.2% from RMB 382.4 million at the end of the previous year to RMB 205.8 million as of June 30, 2023, as the company strategically reduced investments in structured deposit and fund management products due to expected lower returns[68] - Trade payables decreased by 45.8% from RMB 187.3 million at the end of the previous year to RMB 101.4 million as of June 30, 2023, due to reduced payments for raw materials and packaging materials, and decreased purchases from OEM suppliers[69] - Other payables increased by 96.0% from RMB 502.5 million at the end of the previous year to RMB 984.7 million as of June 30, 2023, primarily due to the declaration of dividends totaling RMB 564.3 million at the annual general meeting on June 28, 2023, which were not paid by June 30, 2023[69] - Contract liabilities decreased by 32.6% from RMB 225.3 million at the end of the previous year to RMB 151.7 million as of June 30, 2023, mainly due to increased orders from distributors before the Chinese New Year in mid-January 2023[70] - The capital gearing ratio increased to 3.2% as of June 30, 2023, compared to 2.9% at the end of the previous year[71] - Capital commitments decreased to RMB 40.9 million as of June 30, 2023, from RMB 79.5 million as of December 31, 2022, primarily for the construction of properties, plants, and equipment[75] Segment Performance - The company operates in three reportable segments: seasoned flour products, vegetable products, and bean products & other products[12] - Revenue from seasoning noodle products decreased by 3.9% to RMB 1,288.9 million, accounting for 55.4% of total revenue[35] - Revenue from vegetable products increased by 14.1% to RMB 933.2 million, accounting for 40.1% of total revenue[36] - Revenue from bean products and other products increased by 3.7% to RMB 105.2 million, maintaining a 4.5% share of total revenue[36] - Sales volume of seasoning noodle products decreased by 24.0%, while vegetable products saw a slight decrease of 1.8%[37] - Average selling price per kilogram for seasoning noodle products increased to RMB 20.8 from RMB 16.4[37] - Average selling price per kilogram for vegetable products increased to RMB 34.1 from RMB 29.3[37] Distribution and Sales Channels - The company has a nationwide distribution network in China, collaborating with 1,838 offline distributors as of June 30, 2023[38] - The company's products are sold through distributors to 143 shopping malls, supermarkets, and chain convenience store operators in different countries or regions as of June 30, 2023[38] - Online channel revenue increased by 9.5% to RMB 262.1 million in the first half of 2023, with online direct sales growing by 36.1% to RMB 165.4 million[41] - Offline channel revenue slightly increased by 2.2% to RMB 2,065.2 million in the first half of 2023, despite a decline in foot traffic in traditional and supermarket channels[41] - Revenue from overseas markets grew significantly, contributing RMB 45.0 million (2.2% of total offline revenue) in the first half of 2023, up from RMB 25.1 million (1.2%) in the same period last year[42] Production and R&D - The company has 110 patents related to production processes, such as material supply, puffing, and cutting, as of June 30, 2023[43] - The company has a 17-member team dedicated to the development of automated production equipment and systems, with most automation equipment developed internally[43] - The company collaborates with OEM suppliers to produce lower-volume products, aiming to maximize production efficiency and expand its product portfolio[43] - The company has five factories in Henan Province, with the Linying Xinglin Factory partially operational[44] - Total design capacity for 2023 is 168,302.9 tons, with an actual production of 83,919.8 tons and a capacity utilization rate of 49.9%[45] - The Linying Xinglin Factory has the highest capacity utilization rate at 73.9% among all factories[46] - Capacity utilization rates decreased compared to the previous year due to reduced foot traffic in traditional offline and supermarket channels[47] - The company has established a Quality Management Center to oversee food safety and quality control across the entire production chain[48] - The company employs a modular R&D model, focusing on food technology, industrial production processes, and packaging freshness preservation[49] - The company has two applied R&D centers in Henan and Shanghai, with a 61-member professional research team, 63.9% of whom hold master's degrees[50] Expenses and Costs - Employee benefits expenses increased to RMB 476,513 thousand in 2023, up 20.1% from RMB 396,798 thousand in 2022[19] - Promotion and advertising expenses more than doubled to RMB 89,884 thousand in 2023, compared to RMB 36,929 thousand in 2022[19] - The company's income tax expense increased to RMB 200,499 thousand in 2023, up 70.6% from RMB 117,517 thousand in 2022[19] - Raw material consumption decreased to RMB 897,508 thousand in 2023, down 19.6% from RMB 1,116,852 thousand in 2022[19] - Distribution and sales expenses increased by 36.3% to RMB 367.2 million, accounting for 15.8% of total revenue, up 3.9 percentage points[54] - Advertising and promotion expenses surged by 145.7% to RMB 89.8 million due to increased online advertising and influencer marketing activities[54] - Employee benefits expenses rose to RMB 165.1 million, driven by the expansion of the sales team[54] - Management expenses remained stable at RMB 219.2 million, with a slight decrease in the expense ratio to 9.4% of total revenue[55] - Other income net decreased by 57.5% to RMB 25.5 million, primarily due to reduced government subsidies[56] - Net financing income increased by 263.9% to RMB 86.4 million, mainly due to higher bank interest income[58] - Income tax expenses rose by 70.6% to RMB 200.5 million, reflecting higher taxable income[59] Corporate Governance and Compliance - The company's financial statements are prepared in accordance with International Accounting Standard 34 (Interim Financial Reporting)[10] - The company adopted new and revised International Financial Reporting Standards (IFRS) effective January 1, 2023, with no material impact on financial performance[11] - The company has no significant contingent liabilities as of June 30, 2023[74] - The company has adopted and complied with the Corporate Governance Code as set out in Appendix 14 of the Listing Rules since January 1, 2023[94] - The company's interim report for the six months ended June 30, 2023, will be published on the Hong Kong Stock Exchange and the company's website[96] - The company's audit committee reviewed the unaudited condensed consolidated interim results for the six months ended June 30, 2023, confirming compliance with applicable accounting principles[93] - The company has not engaged in any purchase, sale, or redemption of its listed securities during the reporting period[92] ESG and Sustainability - The company emphasizes sustainable development and corporate social responsibility, integrating ESG principles into daily operations and strategic planning[90] - The company has established a three-level food safety management process and implemented a traceability system to ensure product safety and quality[91] - The company collaborates with academic institutions to innovate production processes, improve food ingredient utilization, and reduce waste emissions[91] - The company has set long-term environmental management goals, including carbon reduction, waste reduction, and energy efficiency improvement[91] - The company's 2022 ESG report was published on April 27, 2023, following the guidelines of Appendix 27 of the Listing Rules[90] - The company has strengthened its governance structure and risk control measures to enhance corporate governance standards[91] Human Resources and Talent Development - The company has 5,712 employees as of June 30, 2023, with total employee benefits (including director remuneration) amounting to RMB 476.5 million[85] - The company has introduced a human resource management system to enhance organizational efficiency and business synergy[86] - The company has established a comprehensive talent development system, focusing on basic, professional, and advanced training to improve employee capabilities[87] - The company has approved a restricted share unit plan effective from January 1, 2021, with a 10-year validity period to incentivize key employees[87] Market and Industry Outlook - China's GDP grew by 5.5% year-on-year in the first half of 2023, with the leisure food market expected to reach RMB 12,378 billion by 2027[30] - The company is exploring a business model suitable for snack retail stores to strengthen its national sales and distribution network[31] IPO Proceeds Utilization - As of June 30, 2023, the company has utilized approximately HKD 191.4 million (21.2%) of the net proceeds from the IPO, with the remaining unused proceeds amounting to HKD 711.9 million[81] - The company has utilized HKD 191.4 million out of the total HKD 903.3 million raised from the IPO, with HKD 711.9 million remaining unused[82] - The company plans to fully utilize the IPO proceeds ahead of the originally disclosed schedule due to a reassessment of business execution plans[83] Future Plans and Strategies - The company plans to strengthen brand building, focus on young consumers, and enhance product quality and competitiveness[79] - The company will continue to expand its distribution network, improve terminal store coverage, and strengthen channel management capabilities[80] - The company will enhance production and R&D capabilities, improve organizational efficiency, and strengthen digitalization to improve overall operational efficiency and consumer experience[80]
卫龙(09985) - 2023 - 中期业绩