Revenue and Profit Performance - Revenue for 2023 remained stable at RMB 6,147.6 million, compared to RMB 6,147.0 million in 2022[2] - Gross profit increased by 4.7% to RMB 1,941.3 million in 2023 from RMB 1,853.9 million in 2022[2] - Net profit rose by 11.2% to RMB 907.0 million in 2023 from RMB 816.0 million in 2022[2] - Profit attributable to owners of the company increased by 14.9% to RMB 852.7 million in 2023 from RMB 742.0 million in 2022[2] - Operating profit grew to RMB 1,194.8 million in 2023 from RMB 1,117.7 million in 2022[5] - Total comprehensive income for the year was RMB 907.3 million in 2023, up from RMB 812.8 million in 2022[7] - The company's revenue for 2023 was RMB 6,147.6 million, maintaining the same level as 2022, with a net profit of RMB 907.0 million, a year-on-year increase of 11.2%[40] - Net profit increased by 11.2% from RMB 816.0 million in 2022 to RMB 907.0 million in 2023, with net profit margin rising from 13.3% to 14.8%[61] Product Revenue Breakdown - Revenue from hot pot seasonings increased to RMB 4,091,666 thousand in 2023, up from RMB 3,664,696 thousand in 2022[16] - Revenue from Chinese compound seasonings grew to RMB 621,397 thousand in 2023, compared to RMB 568,863 thousand in 2022[16] - Revenue from convenience food products decreased to RMB 1,387,122 thousand in 2023, down from RMB 1,870,069 thousand in 2022[16] - Hot pot seasoning revenue increased by 11.7% to RMB 4,091.7 million in 2023, accounting for 66.5% of total revenue[47] - Revenue from sales to related parties for hot pot seasoning increased by 35.6% year-over-year, driven by increased offline consumption demand[47] - Revenue from third-party sales of hot pot seasoning decreased by 3.2% due to competition from new small-block butter hot pot base products[47] - Chinese compound seasoning revenue grew by 9.2% to RMB 621.4 million, with third-party sales increasing by 6.1% and related party sales surging by 176.6%[48] - Convenient food revenue declined by 25.8% to RMB 1,387.1 million, with third-party sales dropping by 27.2% due to diversified consumer demand and slow new product launches[49] Sales Channels and Related Parties - Sales to related parties accounted for 32.7% of total revenue in 2023, up from 24.2% in 2022[16] - Sales to related parties (including Haidilao Group, Super Hi International Group, and Shuhai Supply Chain Group) reached RMB 2,010.8 million in 2023, a 35.0% increase year-on-year[42] - Sales to related parties (e.g., Haidilao Group, Super Hi International, and Shuhai Supply Chain) increased by 35.0% to RMB 2,010.8 million[51] - Revenue from distributors decreased by 11.5% to RMB 3,805.0 million, primarily due to declining demand for self-heating hot pot products[51] - E-commerce channel revenue fell by 8.3% to RMB 304.6 million, mainly due to the decline in convenient food product sales[51] - Revenue from North China region was RMB 2,723.585 million, accounting for 44.3% of total revenue, while South China region contributed RMB 3,047.321 million, representing 49.6% of total revenue[52] Financial Position and Assets - Total assets increased to RMB 6,054.4 million in 2023 from RMB 5,551.3 million in 2022[3] - Total equity attributable to owners of the company rose to RMB 4,817.9 million in 2023 from RMB 4,319.9 million in 2022[3] - Cash and cash equivalents increased to RMB 2,309.4 million in 2023 from RMB 1,880.5 million in 2022[3] - Cash and cash equivalents increased to RMB 2,309.4 million as of December 31, 2023, compared to RMB 1,880.5 million in the previous year[63] - Inventory decreased to RMB 370.5 million as of December 31, 2023, from RMB 387.5 million in 2022, with inventory turnover days decreasing from 33.3 days to 32.9 days[65] - Trade receivables increased to RMB 258.1 million as of December 31, 2023, from RMB 155.6 million in 2022, mainly due to increased revenue from affiliated stores[66] - The company has no bank borrowings and a capital-to-debt ratio of 1.7% as of December 31, 2023, down from 2.5% in 2022[69] Expenses and Costs - Total expenses decreased to RMB 5,071,127 thousand in 2023 from RMB 5,167,513 thousand in 2022, reflecting a reduction in various cost categories[24] - Employee benefits expenses increased to RMB 581,512 thousand in 2023, up from RMB 545,352 thousand in 2022, indicating higher labor costs[24] - Sales cost decreased by 2.0% from RMB 4,293.1 million in 2022 to RMB 4,206.3 million in 2023, primarily due to lower procurement prices of raw materials such as oils, peppercorns, and beef packages[53] - Distribution expenses decreased by 8.8% from RMB 646.6 million in 2022 to RMB 589.4 million in 2023, mainly due to reduced advertising and transportation costs[55] - Administrative expenses increased by 20.9% from RMB 227.8 million in 2022 to RMB 275.5 million in 2023, driven by higher travel and office expenses as well as discretionary bonuses for senior management[56] Earnings and Dividends - Basic and diluted earnings per share were RMB 0.875 in 2023[2] - Basic earnings per share increased to 87.5 RMB cents in 2023, up from 75.7 RMB cents in 2022, reflecting improved profitability[34] - Diluted earnings per share remained consistent with basic EPS at 87.5 RMB cents in 2023, indicating minimal dilution impact from potential shares[36] - Total dividends paid in 2023 amounted to RMB 179,312,000 or RMB 0.1772 per share, compared to RMB 224,563,000 or RMB 0.219563 per share in 2022[37] - The company proposed a final dividend of RMB 0.74 per ordinary share for the year ended December 31, 2023, totaling RMB 767,158,000, to be approved at the annual general meeting on May 23, 2024[38] - The board proposed a final dividend of RMB 0.74 per share for the year ended December 31, 2023, totaling approximately RMB 767,158,000, to be paid on or around June 18, 2024[81] - The final dividend will be converted to HKD at the average benchmark exchange rate published by the People's Bank of China, resulting in a dividend of HKD 0.8154 per share[81] - Shareholders registered by May 30, 2024, will be eligible to receive the final dividend[82] - The company will suspend share transfer registration from May 29 to May 30, 2024, to determine eligibility for the final dividend[82] Strategic Initiatives and Future Plans - The company focused on optimizing supply chain efficiency, improving self-production ratios, and enhancing overseas supply capabilities[39] - The company implemented a multi-brand strategy, emphasizing the integration of brands and products, and enhancing consumer brand awareness through various promotional methods[39] - The company plans to focus on product R&D, overseas expansion, brand promotion, channel construction, and supply chain optimization in 2024[72] - The company will continue to implement a multi-brand strategy, enhancing consumer recognition of brands like "Haidilao" and "Kuaishou Xiaochu" through online and offline marketing[72] - The company aims to optimize overseas supply chains, reduce logistics costs, and improve efficiency, particularly with the establishment of the Southeast Asia supply center[72] - The company will strengthen its e-commerce channel management, focusing on product differentiation and enhancing online shopping experiences[73] Operational Highlights - The company launched 24 new hot pot seasoning products, 37 new Chinese compound seasoning products, and 40 new instant food products in 2023[43] - As of December 31, 2023, the company had 62 hot pot seasoning products, 68 Chinese compound seasoning products, and 72 instant food products available for sale[43] - The company's third-party distributor sales business covered 34 provincial-level administrative regions in China and 49 overseas countries and regions[41] - The company operated 9 flagship stores on e-commerce platforms such as Tmall, JD.com, and Pinduoduo as of December 31, 2023[41] - The Hebei Bazhou Phase II project, with an annual capacity of 28,000 tons of instant food products, commenced operations in Q1 2024[74] - The Anhui Yihai Technology beef tallow production base, with a planned annual capacity of 57,000 tons, is expected to start operations in Q2 2024[74] - The Thailand factory, with an annual capacity of 15,000 tons of hotpot base and compound seasoning products, began operations in Q2 2023 and primarily serves the Southeast Asian market[74] Share Repurchase and Employee Information - The company repurchased and canceled 10,200,000 ordinary shares in 2023, with a total consideration of approximately RMB 175,757 thousand[22] - The company repurchased 10,200,000 shares on the Hong Kong Stock Exchange for a total consideration of approximately HKD 199,740,172 (RMB 175,757,000) during the reporting period[77] - Total number of employees as of December 31, 2023, is 2,816, including 2,097 in production, 562 in marketing, and 157 in administrative and management roles[70] - Total employee costs for the year ending December 31, 2023, amounted to RMB 581.5 million, covering salaries, wages, allowances, and benefits[70] - The company approved and granted 125,000 restricted share units under the Restricted Share Unit Plan on November 23, 2023[80] Accounting and Reporting - The company adopted new and revised accounting standards effective from January 1, 2023, which are not expected to have a significant impact on current or future periods[12] - The annual report for the year ended December 31, 2023, includes all information required by the listing rules and will be published on the company and HKEX websites[83] Government Grants and Financing - Government grants increased to RMB 88,929 thousand in 2023 from RMB 83,704 thousand in 2022, primarily from tax refunds and deferred income amortization[25] - Net financing income rose significantly to RMB 69,296 thousand in 2023, compared to RMB 24,435 thousand in 2022, driven by higher interest income[26] - Income tax expense for 2023 was RMB 357,089 thousand, slightly higher than the RMB 326,161 thousand recorded in 2022[27]
颐海国际(01579) - 2023 - 年度业绩