Bestore(603719)2024-04-25 12:11Financial Performance - Q1 2023 revenue reached 2.38 billion RMB, with net profit attributable to shareholders of 148.69 million RMB[22] - Q2 2023 revenue was 1.60 billion RMB, with net profit attributable to shareholders of 40.62 million RMB[22] - Q3 2023 revenue stood at 2.01 billion RMB, but net profit attributable to shareholders dropped significantly to 1.998 million RMB[22] - Q4 2023 revenue was 2.05 billion RMB, but the company reported a net loss attributable to shareholders of 11.02 million RMB[22] - The company's full-year 2023 revenue was 8.05 billion RMB, with a net profit attributable to shareholders of 179.29 million RMB[22] - Revenue in 2023 decreased by 14.76% to 8,045,888,960.40 compared to 9,439,614,030.51 in 2022[32] - Net profit attributable to shareholders dropped by 46.26% to 180,285,890.50 from 335,475,973.76 in 2022[32] - Basic earnings per share fell by 46.43% to 0.45 from 0.84 in 2022[33] - Weighted average return on equity decreased by 7.43 percentage points to 7.43% in 2023[33] - Total revenue for 2023 was 7,951,400,892.03 yuan, a decrease of 14.67% year-over-year, with a corresponding decrease in operating costs of 14.92%[71] - Gross profit margin increased by 0.21 percentage points to 27.88% in 2023[71] - E-commerce business revenue declined by 32.58% year-over-year, primarily due to industry and platform changes[72] - The company achieved a net profit attributable to shareholders of 180.285 million yuan, with a cash dividend of 90.225 million yuan, accounting for 50.05% of the net profit[86] Dividends and Shareholder Returns - The company's total share capital is 401,000,000 shares, with a proposed cash dividend of 2.25 yuan per 10 shares, totaling 90,225,000.00 yuan[12] - The cash dividend for 2023 accounts for 50.05% of the net profit attributable to shareholders[12] - The company's undistributed profits as of December 31, 2023, amounted to 599,625,261.93 yuan[12] - The company distributed a cash dividend of 100.69 million yuan, accounting for 30.01% of the net profit attributable to shareholders in 2022[104] - A three-year (2023-2025) shareholder dividend return plan was established[157] Cash Flow and Financial Position - Operating cash flow for Q1 2023 was 302.68 million RMB, increasing to 383.18 million RMB in Q2[22] - Q3 2023 operating cash flow was 274.88 million RMB, and Q4 saw a further increase to 319.02 million RMB[22] - Operating cash flow surged by 1,144.38% to 1,279,759,894.98 in 2023 from 102,842,955.13 in 2022[32] - Net cash flow from operating activities increased by 1,144.38% to RMB 1,279,759,894.98[63] - Investment cash flow was -302,463,288.58 yuan in 2023, mainly due to increased expenditures on fixed assets, intangible assets, and renovations[108] - Financing cash flow was -413,274,775.79 yuan in 2023, primarily due to increased rental payments for direct-operated stores[108] - Cash and cash equivalents increased by 45.56% to 1,971,423,858.49 yuan, driven by sales collection and payment rhythm for procurement[111] - Accounts receivable decreased by 48.13% to 381,088,219.90 yuan, mainly due to a decline in e-commerce sales and the impact of the Spring Festival rhythm[111] - Total assets increased by 9.64% to 5,521,460,814.80 in 2023 from 5,035,859,789.33 in 2022[32] - Inventory increased by 18.20% to 916.45 million in 2023 compared to 641.18 million in 2022[182] - Long-term accounts receivable increased by 827.99% to 5.36 million in 2023 compared to 577,455.10 in 2022[182] - Long-term equity investment increased by 56.89% to 44.45 million in 2023 compared to 28.33 million in 2022[182] - Intangible assets increased by 78.69% to 240.15 million in 2023 compared to 134.39 million in 2022[182] Government Subsidies and Non-Recurring Gains - Government subsidies in 2023 amounted to 87.06 million RMB, a decrease from 162.22 million RMB in 2022[24] - Non-recurring gains from financial assets held by non-financial enterprises totaled 59.99 million RMB in 2023[24] - Other income contributed 91,059,289.79 yuan, accounting for 34.75% of total profit, mainly from government subsidies[110] - Investment income was 59,999,364.00 yuan, accounting for 22.89% of total profit, mainly from equity investment disposals[110] Market and Industry Trends - China's total retail sales of consumer goods grew by 7.2% to 47.15 trillion yuan in 2023[36] - The snack food market in China reached 928.6 billion yuan in 2023, with expectations to exceed 1 trillion yuan in 2024[37] - In 2023, China's snack market size reached 928.6 billion yuan, with a projected market size exceeding 1 trillion yuan in 2024. The per capita snack consumption in China is half the global average, one-third of Japan's, and one-fifth of the US's, indicating significant growth potential[43] - The snack industry is characterized by rapid product iteration and channel transformation, with new categories like packaged baked goods and meat snacks growing 1.5 times faster than the industry average. Offline channels account for 82.6% of the market, while online channels make up 17.4%, with traditional e-commerce growth slowing and traffic shifting to content-driven platforms[43] Product and Pricing Strategy - The company adjusted prices for over 300 products to enhance market competitiveness[39] - The company's store business has seen a steady year-on-year increase in customer transactions, driven by the introduction of fresh short-shelf-life snacks and seasonal frozen products like frozen durian, chestnuts, and bayberries, which effectively boosted in-store sales and average transaction value[40] - The e-commerce business achieved a breakthrough in sales of scenario-based product combinations by focusing on user needs for "natural, healthy, and nutritious" products, with 0-additive and 0-sugar light series products gaining popularity. Sales on platforms like Meituan, Pinduoduo, and Yonghui grew rapidly[40] - The company integrated global high-quality supply chain resources to offer cost-effective products without compromising quality, collaborating with industry leaders to develop new products like chicken feet and air-dried beef, and introducing innovative products like chickpea-based tofu to meet consumer demand for low trans-fat and reduced oil content[41] - The company plans to launch over 140 new healthy snack products in 2024, covering categories such as pastries, biscuits, vegetarian snacks, and dried fruits[61] Supply Chain and Operations - The company's supply chain can deliver products from concept to production in as little as 26 days[62] - The company implemented a smart supply chain management platform to optimize inventory turnover and improve delivery efficiency[100] - The company's supply chain management model includes supply planning, procurement, and logistics, with the company using a "sales-driven procurement" approach to optimize inventory turnover and ensure product freshness. The EWM system enables real-time order tracking and delivery management[47] - The company established 6 self-operated regional warehouses in Wuhan, Nanjing, Chengdu, and Dongguan to mitigate supply chain risks[127] - Direct procurement from origin was achieved for products such as Yunnan macadamia nuts, Xinjiang walnuts, and Vietnamese cashews[127] - The company implemented a five-level production and sales coordination system, including annual capacity planning and weekly order procurement plans[127] E-commerce and Digital Transformation - The company's e-commerce business will focus on integrating online and offline channels, leveraging AI technology to enhance content creation and user experience[54] - The company's platform e-commerce strategy focuses on data-driven insights to match consumer needs with product offerings and delivery channels[81] - The company's social e-commerce strategy leverages platforms like Douyin and Kuaishou, utilizing MCN agencies and live streaming to boost brand awareness and user engagement[81] - Online sales revenue decreased by 32.58% to 3.17 billion in 2023, accounting for 39.83% of total revenue[184] - Total reachable members reached 150 million, with 75.69 million key members maintained as of December 31, 2023[184] - Member sales accounted for 64.35% of total sales in 2023[184] Corporate Governance and Management - The company's General Manager, Yang Hongchun, received a pre-tax remuneration of 2.6384 million yuan in 2023[141] - The company's General Manager, Yang Yinfen, received a pre-tax remuneration of 2.0713 million yuan in 2023[141] - The company's Director, Zhang Guoqiang, received a pre-tax remuneration of 1.2708 million yuan in 2023[141] - The company's Independent Director, Wei Anning, received a pre-tax remuneration of 240,000 yuan in 2023[141] - The company's Independent Director, Gong Shunrong, received a pre-tax remuneration of 62,600 yuan in 2023[141] - The company's Independent Director, Li Chuanhai, received a pre-tax remuneration of 62,600 yuan in 2023[141] - The company's former Independent Director, Hu Yanzao, received a pre-tax remuneration of 177,400 yuan in 2023[141] - The company's former Independent Director, Chen Qifeng, received a pre-tax remuneration of 177,400 yuan in 2023[141] - The company's Board Secretary and Deputy General Manager, Xu Ran, received a pre-tax remuneration of 914,900 yuan in 2023[141] - The company's Supervisor, Wan Zhangnan, received a pre-tax remuneration of 709,600 yuan in 2023[141] - The total actual compensation received by all directors, supervisors, and senior management during the reporting period was 15.9362 million yuan[147] - The company held 10 board meetings during the year, including 2 on-site meetings, 5 via teleconference, and 3 combining on-site and teleconference[154] - The board approved the "2023 Employee Stock Ownership Plan (Draft)" and related proposals during the 18th meeting of the second board of directors[149] - The board approved the revision of the company's articles of association and various management systems during the 20th meeting of the second board of directors[149] - The board nomination and remuneration committee reviewed and approved the 2022 executive compensation execution and 2023 compensation plan on February 10, 2023[146] - The company implemented new compensation and performance evaluation systems for directors, supervisors, and senior management in 2023[146] - Several senior management changes occurred, including the election of new independent directors and the resignation of some executives due to term expiration or personal reasons[148] - The company's senior management team underwent significant restructuring in 2022, with multiple new vice presidents appointed in October 2022[144] - The company's board members maintained a 100% attendance rate for board meetings during the reporting period, with no consecutive absences[150] - The company held 4 meetings of the Nomination and Remuneration Committee during the reporting period, focusing on employee stock ownership plans and executive compensation[155] - The company strictly adheres to information disclosure regulations, ensuring timely and accurate disclosure of information to all investors[156] - The 2023 First Extraordinary General Meeting approved various proposals including the 2023 Employee Stock Ownership Plan and amendments to corporate governance documents[156] - The 2022 Annual General Meeting approved the 2022 financial report, profit distribution plan, and the appointment of 2023 financial and internal control auditors[157] - The 2023 Second Extraordinary General Meeting approved revisions to the independent director system and elected members of the third board of directors[157] - Total pre-tax compensation for directors, supervisors, and senior management during the reporting period was 1,593.62 million yuan[158] - The company plans to use idle funds for cash management and authorized management to make investment decisions[157] - The company and its subsidiaries will apply for comprehensive credit lines from financial institutions and provide corresponding guarantees[157] - Changes in senior management positions occurred during the reporting period, with some vice presidents resigning[158] - Yang Hongchun served as Chairman of the company from November 2017 to November 2023 and concurrently as General Manager from September 2022 to November 2023[159] - Yang Yinfen has been serving as Chairman and General Manager of the company since November 2023[159] - Yang Hongchun holds multiple executive positions in various investment and management companies, including Ningbo Hanliang, Ningbo Hanlin, Ningbo Hannin, and Ningbo Hanliang, with terms ending on March 6, 2023[160] - Yang Hongchun is a director of Yongyi Furniture Co., Ltd. starting from March 2024[161] - Yang Yinfen is a director of Ningbo Hanxu Yiyuan Investment Management Co., Ltd. since July 2017[161] - Wang Jiafen serves as an independent director of New Hope Liuhe Co., Ltd. since May 2022[161] - Yang Rongfeng is a partner at Capital Today Group (HK) Limited since February 2023[161] - Yang Rongfeng is a director of Three Squirrels Inc. from December 2021 to March 2024[161] - Yang Rongfeng is a director of Shanghai Xiangyi Herbal Cosmetics Co., Ltd. since December 2022[161] - Yang Rongfeng is a director of Wode Beverage (Shanghai) Co., Ltd. since January 2023[161] - Revised the "Liangpin Puzi Co., Ltd. Related Party Transaction Management System"[163] - Revised the "Liangpin Puzi Co., Ltd. Major Transaction Decision-Making System"[163] - Revised the "Liangpin Puzi Co., Ltd. Fundraising Management System"[163] - Established the "Liangpin Puzi Co., Ltd. Director and Supervisor Compensation Management System"[163] - Established the "Liangpin Puzi Co., Ltd. Senior Management Compensation and Performance Evaluation Management System"[163] - Approved the "2022 Annual Financial Report" and "2022 Annual Profit Distribution Plan"[163] - Approved the "2023 Semi-Annual Report" and "2023 Semi-Annual Fundraising and Usage Report"[163] - Approved the "2023 Third Quarter Report"[164] - Elected new board members for the third board of directors, including Yang Hongchun, Yang Yinfen, and Zhang Guoqiang[164] - Revised the "Liangpin Puzi Co., Ltd. Independent Director Work System"[164] Research and Development - The company's R&D model combines in-house research with external collaborations, leveraging food science and technology to develop new ingredients, formulas, and processes that enhance nutritional value and taste, while also improving product standards and cost efficiency[46] - Total R&D investment for the period was RMB 43,730,227.04, accounting for 0.54% of total revenue[168] - R&D expenses decreased by 13.50% to 43.73 million in 2023 compared to 50.55 million in 2022[181] - The company has established 6 professional R&D laboratories and a product testing center certified by CNAS[61] Employee and Labor Management - The company's 2023 employee stock ownership plan involved the transfer of 3,016,600 shares at a price of 16.70 yuan per share[11] - The company has a total of 11,046 employees, with 3,254 in the parent company and 7,792 in major subsidiaries[177] - Sales personnel account for the largest proportion of employees at 9,163, followed by administrative personnel at 911[177] - The company's employee education level is predominantly below bachelor's degree, with 7,007 employees having education below college level[177] - The company paid a total of 27.45 million yuan for 1,372,307 hours of outsourced labor[103] Sustainability and Social Responsibility - The company implemented carbon reduction measures, including using clean energy and optimizing packaging to reduce carbon emissions[69] - The company's environmental compliance was maintained, with no major environmental violations or accidents reported[68] - The company's social responsibility report was disclosed on April 26, 2024, detailing sustainability efforts[67] - The company donated a total of 1,086,300 yuan in 2023, including 100,000 yuan in cash and 986,300 yuan in material donations[76] Risk Management and Compliance - The company faces risks related to product quality due to factors such as raw material supply, supplier production capacity, transportation, and climate conditions, which could impact brand image and financial performance[119] - The company has a strong brand reputation with awards like "China Well-known Trademark" and "E-commerce Demonstration Enterprise," but faces risks from counterfeit products that could harm brand image and consumer trust[119] - Seasonal sales risks are significant, with peak demand during Q1 and Q4 due to holidays and promotional events like "618" and "Double 11"[137] - Fluctuations in raw material prices, such as nuts, fruits, and meat, pose a risk to the company's profitability[137] - Food safety remains a critical focus for the company, aligning with increasing government and consumer attention to quality and safety[138] - The company has established a comprehensive quality control system, including supplier management, production control, and product testing, to ensure food safety[118] Shareholder and Executive Commitments - Major shareholder Da Yong Limited commits to selling shares at a price not lower than the IPO price within two years after the lock-up period ends[187] - Shareholder Ningbo Aibang