Financial Performance - Revenue for the year ended December 31, 2023, was RMB 13,926.5 million, representing a 9.0% increase from RMB 12,775.9 million in 2022[2] - Gross profit increased to RMB 8,294.3 million, up 7.7% from RMB 7,703.5 million in the previous year[2] - Adjusted comparable EBITDA rose by 12.4% to RMB 2,215.5 million, compared to RMB 1,971.9 million in 2022[2] - Net profit decreased by 4.9% to RMB 581.8 million, down from RMB 611.8 million in 2022[2] - The adjusted comparable net profit was RMB 778.3 million, reflecting a 6.4% increase from RMB 731.2 million in the prior year[2] - Total revenue for the year ended December 31, 2023, reached RMB 13,926,470 thousand, an increase from RMB 12,775,914 thousand in 2022, representing a growth of approximately 9%[21] - The company reported a pre-tax profit of RMB 933,602 thousand for the year, compared to RMB 1,030,931 thousand in the previous year, indicating a decrease of about 9.4%[17][19] - The company reported a pre-tax profit of RMB 1,472,992 thousand for 2023, compared to RMB 1,324,163 thousand in 2022, reflecting an increase of approximately 11.2%[31] Assets and Liabilities - Total non-current assets amounted to RMB 14,908.6 million, a slight decrease from RMB 15,103.6 million in 2022[9] - Current assets totaled RMB 5,133.4 million, down from RMB 5,859.4 million in the previous year[9] - The company reported a net asset value of RMB 6,295.2 million, an increase from RMB 6,141.9 million in 2022[9] - As of December 31, 2023, the group recorded net current liabilities of RMB 3,307.8 million, primarily due to bank loans and preferred notes totaling RMB 4,722.1 million maturing within the next twelve months[11] - Total debt as of December 31, 2023, was RMB 8,933.7 million, a decrease from RMB 9,363.4 million in 2022, indicating a reduction of approximately 4.6%[88] - The net leverage ratio improved to 3.42 times as of December 31, 2023, down from 3.58 times in the previous year[87] Cash Flow and Financing - The net cash flow from operating activities for the year ended December 31, 2023, was RMB 1,096.9 million, derived from a pre-tax cash flow of RMB 1,653.0 million after deducting income tax payments of RMB 556.2 million[83] - Cash flow used in investing activities was RMB 52.1 million, primarily due to purchases of property, plant, and equipment, as well as intangible assets totaling RMB 91.0 million[84] - Cash flow used in financing activities was RMB 1,994.6 million, mainly related to repayment of bank loans and interest payments totaling RMB 1,842.6 million[85] - The company has not utilized its available revolving credit of USD 75.0 million as of the announcement date, indicating a strong liquidity position[86] - The company successfully issued RMB 500 million in guaranteed bonds at a 7.5% interest rate on March 20, 2024[90] Segment Performance - The infant formula segment generated revenue of RMB 5,179,961 thousand, while the probiotics and nutritional supplements segment contributed RMB 1,111,749 thousand for the year ended December 31, 2023[19] - Revenue from the pet nutrition and care segment was RMB 1,529,530 thousand, showing a significant contribution to the overall revenue[21] - The nutritional supplements segment generated revenue of RMB 8,415.3 million, representing a year-on-year growth of 35.3% and accounting for 60.4% of total revenue[58] - Revenue from the adult nutrition and care products segment in mainland China grew by 37.4%, contributing 66.0% to the total revenue of this segment[60] - The company achieved revenue growth of 9.0% in adult nutrition and care products and 8.2% in infant nutrition and care products[44] Market and Growth Strategy - The company plans to continue expanding its product offerings and market presence, particularly in the pet nutrition sector, as part of its growth strategy[19] - The company is expanding into Southeast Asia, India, and the Middle East, achieving strong momentum in these markets[46] - The company aims to optimize its capital structure and reduce leverage while maintaining healthy cash conversion levels[46] - The group plans to invest in the pet nutrition and care products segment to achieve future growth, including expanding Zesty Paws' market position in North America[56] - The group intends to stabilize the revenue level of its infant formula business with the support of innovative high-end products and a stable birth rate in China[56] Expenses and Costs - The cost of goods sold for the year was RMB 5,318,971 thousand, compared to RMB 4,823,197 thousand in the previous year, reflecting an increase of approximately 10.3%[31] - Sales and distribution costs increased by 7.6% to RMB 5,405.2 million, with the percentage of these costs relative to total revenue decreasing from 39.3% to 38.8%[70] - Administrative expenses rose by 16.6% to RMB 848.5 million, with the percentage of revenue increasing from 5.7% to 6.1%[75] - Research and development (R&D) expenses increased by 30.3% to RMB 206.1 million, representing 1.5% of total revenue, up from 1.2% in the previous year[76] Dividends and Shareholder Returns - The proposed dividend for the year is RMB 101.6 million, down from RMB 220.7 million in the previous year[9] - The board of directors proposed a final dividend of HKD 0.18 per share, leading to a total annual dividend of HKD 0.62 per share, which represents approximately 46% of the adjusted net profit for the year ending December 31, 2023[92] - The interim dividend paid for the year was HKD 0.44 per share, an increase from HKD 0.25 per share in 2022[38] Compliance and Governance - The financial statements have been prepared in accordance with International Financial Reporting Standards and Hong Kong Companies Ordinance disclosure requirements[11] - The company has adopted the corporate governance code as per the listing rules and has complied with all provisions for the year ending December 31, 2023[95] - The audit committee consists of three members, all of whom are non-executive directors, ensuring compliance with the listing rules[97] - The independent auditor has reviewed the preliminary performance announcement and confirmed consistency with the consolidated financial statements for the year ending December 31, 2023[99]
H&H国际控股(01112) - 2023 - 年度业绩