Financial Performance - Yihai International Holding Ltd. reported a revenue of HK$1.2 billion for the first half of 2023, representing a year-on-year increase of 15%[3]. - The company achieved a net profit of HK$300 million, up 20% compared to the same period last year[3]. - Revenue for the first half of 2023 was RMB 2,616,226, a decrease of 2.7% compared to RMB 2,688,482 in the same period of 2022[15]. - Gross profit increased by 4.4% to RMB 798,589 from RMB 765,107 year-on-year[16]. - Operating profit rose by 28.0% to RMB 498,429 compared to RMB 389,315 in the previous year[16]. - Profit for the period reached RMB 376,960, reflecting a 27.3% increase from RMB 296,017 in the prior year[16]. - Basic earnings per share attributable to equity holders increased by 36.3% to 36.59 RMB cents from 26.84 RMB cents[18]. - The Group's net profit increased by 27.3% from RMB296.0 million for the six months ended 30 June 2022 to RMB377.0 million for the corresponding period in 2023, with a net profit margin rising from 11.0% to 14.4%[59]. - Profit attributable to the owners of the Company for the six months ended June 30, 2023, was RMB 357,825,000, an increase of 35.9% compared to RMB 263,144,000 in 2022[200]. Revenue Breakdown - Revenue from hot pot condiments was RMB 1,654.2 million, accounting for 63.2% of total revenue, an increase from 52.9% in the same period last year[39]. - Revenue from Chinese-style compound condiments grew by 6.6% from RMB342.9 million in H1 2022 to RMB365.3 million in H1 2023, representing 14.0% of total revenue[43]. - Revenue from convenient ready-to-eat food products decreased to RMB 573.0 million, representing 21.9% of total revenue, down from 33.4% in the previous year[39]. - Revenue from sales of hot pot condiment products to related parties rose by 36.9% year-on-year, driven by increased revenue from related party stores as the catering industry recovered[41]. - Revenue from sales to related parties accounted for approximately 33.9% of the Group's total revenue for the six months ended 30 June 2023, compared to 24.5% for the same period in 2022[154]. Market and Growth Strategy - The company provided a positive outlook, projecting a revenue growth of 10-15% for the second half of 2023[3]. - Yihai International is investing HK$200 million in new product development, focusing on plant-based food options[3]. - The company plans to expand its market presence in Southeast Asia, targeting a 30% increase in market share by 2025[3]. - The Group continued to innovate in product research and development, aiming to meet diverse consumer needs and expand into overseas markets[21]. - The Group aims to enhance product acceptance in overseas markets by focusing on local flavors and unique styles[34]. Cost Management and Efficiency - The company reported a gross margin of 35%, an improvement from 32% in the previous year[3]. - Yihai International is implementing new technology in its production processes, aiming to reduce costs by 10% over the next year[3]. - Distribution expenses decreased by 23.8% to RMB 239.8 million, representing 9.2% of total revenue, down from 11.7% in the same period of 2022[56]. - Administrative expenses increased by 11.6% to RMB 140.8 million, with the percentage of revenue rising to 5.4% from 4.7%[58]. - Cost of sales decreased by 5.5% to RMB 1,817.6 million for the six months ended June 30, 2023, primarily due to lower raw material prices[52]. Investments and Acquisitions - Yihai International is exploring potential acquisitions to enhance its supply chain efficiency, with a budget of HK$500 million allocated for this purpose[3]. - The Group plans to enhance product research and development capabilities by adhering to a "project-based products" system and introducing innovative talents[64]. - The planned annual production capacity for the Bazhou Phase II project is adjusted to 28,000 tonnes, expected to commence operation by the end of Q3 2023, focusing on northern and northeastern China[69]. - The Group aims to explore potential strategic investment opportunities to enhance product development, channel expansion, and cost control[74][75]. Financial Position - Total assets decreased by 5.4% to RMB 5,254,211 from RMB 5,551,293 at the end of 2022[18]. - Total equity increased slightly by 0.5% to RMB 4,558,828 compared to RMB 4,537,021 at the end of 2022[18]. - Non-current liabilities decreased by 13.5% to RMB 133,543, while current liabilities decreased by 34.7% to RMB 561,840[18]. - Cash and cash equivalents amounted to approximately RMB2,092.1 million as at 30 June 2023, up from RMB1,880.5 million as at 31 December 2022[59]. - The asset-liability ratio decreased from 18.3% as at 31 December 2022 to 13.2% as at 30 June 2023, with no bank borrowings reported[59]. Shareholder Information - As of June 30, 2023, Mr. Sean Shi holds 130,592,992 ordinary shares, representing 12.60% of the total issued share capital[78]. - Ms. Shu Ping holds 325,896,021 ordinary shares, representing 31.44% of the total issued share capital[78]. - Mr. Zhang Yong also holds 325,896,021 ordinary shares, representing 31.44% of the total issued share capital[78]. - The Company approved and granted a total of 9,140,000 RSUs, with 1,510,000 granted to two Directors on December 28, 2016, and as of June 30, 2023, 748,000 RSUs have been cancelled due to employee resignations, leaving 8,392,000 RSUs vested[91]. Compliance and Governance - The company complied with the Corporate Governance Code during the six months ended June 30, 2023[104]. - The Audit Committee reviewed the unaudited condensed consolidated interim financial results for the six months ended June 30, 2023, and found them compliant with relevant accounting standards[106]. - There were no material events after the end of the reporting period that require disclosure[113].
颐海国际(01579) - 2023 - 中期财报