Company Overview - Guoquan Food is a leading and rapidly growing home meal products brand in China, focusing on ready-to-eat, ready-to-heat, and ready-to-cook products, particularly hotpot and barbecue items[5]. - The product portfolio includes eight categories: hotpot products, barbecue products, beverages, solo-dining meals, ready-to-cook meal kits, fresh produce, western cuisines, and snacks[5]. - The company has established a store network primarily comprising franchised stores, deriving substantially all revenue from product sales to franchisees, without charging franchise fees[5]. Financial Performance - Guoquan Food (Shanghai) Co., Ltd. reported a revenue of RMB 1.2 billion for the fiscal year ended December 31, 2023, representing a year-over-year increase of 15%[15]. - The company achieved a net profit of RMB 150 million, which is a 20% increase compared to the previous year[15]. - The annual report indicates a commitment to expanding both online and offline shopping options to maximize consumer engagement[7]. - The Group recorded revenue of RMB 6,094.1 million, representing a decrease of approximately 15.0% compared to the corresponding period of 2022[22]. - The Group achieved a gross profit of RMB 1,350.9 million and a gross profit margin of 22.2%, an increase of 4.8 percentage points from 17.4% over the corresponding period of 2022[22]. - The net profit for the year was RMB 263.4 million, representing an increase of approximately 9.3% over the corresponding period of 2022[22]. - The adjusted net profit (Non-IFRS measure) for the year was RMB 318.0 million, reflecting a year-on-year increase of 23.8%[22]. Market Expansion and Strategy - The company plans to expand its market presence by entering three new provinces in China by the end of 2024[15]. - Guoquan Food is investing RMB 200 million in R&D for new product development, focusing on plant-based hotpot ingredients[15]. - The Group aims to enhance its online sales channels, targeting a 30% increase in e-commerce revenue by the end of 2024[15]. - The Group's strategy focuses on digital empowerment of the supply chain and franchisees to improve market responsiveness[29]. - The Group aims to consolidate market leadership by focusing on brand, product, and channel development[27]. Product Development and Innovation - A total of 339 new SKUs were launched in 2023 to cater to evolving consumer demands and preferences[21]. - The management highlighted the successful launch of a new hotpot soup base product, which contributed to a 10% increase in sales in Q4 2023[15]. - The Group plans to enhance its R&D capabilities and optimize existing products based on consumer feedback to meet local preferences[52]. Supply Chain and Operational Efficiency - The company emphasizes operational efficiency through a robust supply chain and digitalized management system, ensuring product quality and safety[7]. - The Group achieved next day delivery for most orders through a streamlined supply chain, optimizing costs and enhancing product affordability for franchisees and consumers[40]. - The Group's supply chain system ensures high quality and safety of products while maintaining cost advantages through stable relationships with upstream suppliers[45]. - The Group's digital supply chain allows for real-time monitoring of supply and demand dynamics, improving overall efficiency[48]. Online Sales and Marketing - Guoquan Food is developing online sales channels, including its Guoquan APP and partnerships with third-party food delivery platforms like Meituan and Ele.me, enhancing consumer reach[7]. - The Group achieved over six billion exposures through livestreaming and short-form videos on Douyin in 2023, enhancing consumer interaction[36]. - The Group's marketing efforts on social media platforms, including Douyin, resulted in over 6 billion exposures in 2023[38]. Governance and Management - The company has a diverse board with members experienced in finance, law, and the catering industry, which supports comprehensive decision-making[130][132]. - The company emphasizes independent judgment in its board operations, enhancing its governance framework[130][131]. - The Group is committed to maintaining high standards of financial management and internal control, as emphasized by the roles of its financial officers[136]. Employee and Community Relations - As of December 31, 2023, the Group had a total of 2,045 employees, with total employee benefit expenses amounting to RMB 463.4 million for the year[169]. - The Group is committed to integrating ESG criteria into its business activities, focusing on product quality, consumer service, and environmental protection[169]. - The Group's charitable donations for the year ended December 31, 2023 amounted to approximately RMB 3.5 million[199]. Future Plans and Use of Proceeds - The company plans to utilize the proceeds for construction, investment, and acquisition of plants, with a total allocation of 25% or HK179.5 million of the proceeds for opening and operating self-operated stores, also expected to be fully utilized by December 31, 2027[189]. - The company has plans for future utilization of the remaining proceeds as disclosed in the "Future Plans and Use of Proceeds" section of the Prospectus[190].
锅圈(02517) - 2023 - 年度财报