亲亲食品(01583) - 2024 - 中期业绩

Financial Highlights & Performance Overview The company's H1 2024 financial performance showed slight revenue decline but significant profit growth from improved margins and cost control Key Financial Metrics For the six months ended June 30, 2024, revenue slightly decreased, but gross profit increased by 3.4% and profit attributable to owners of the Company grew by 25.4% | Metric | Six Months Ended June 30, 2024 (Thousand Yuan) | Six Months Ended June 30, 2023 (Thousand Yuan) | Change | | :--- | :--- | :--- | :--- | | Revenue | 563,585 | 568,823 | -0.9% | | Gross Profit | 171,722 | 166,088 | +3.4% | | Gross Margin | 30.5% | 29.2% | +1.3 percentage points | | Profit Attributable to Owners | 32,809 | 26,159 | +25.4% | | Basic EPS | RMB 0.043 | RMB 0.035 | +22.9% | | Net Cash Position | 226,282 | - | - | Overall Performance Review Total revenue slightly decreased by 0.9%, but net profit significantly increased due to improved gross margin and reduced tax expenses - Revenue for the reporting period was approximately RMB 563.6 million, a 0.9% year-on-year decrease, primarily due to reduced jelly product sales, partially offset by increased sales of puffed food, confectionery, and other products[71] - Profit attributable to owners of the Company increased by approximately RMB 6.6 million year-on-year, mainly benefiting from improved gross margin, the base effect of investment losses in the prior period, and a significant reduction in current tax expenses[71][72] - A one-time loss on disposal of property, plant, and equipment of approximately RMB 6.1 million was recorded due to the closure of the continuously loss-making Ningxia production base[71] Segment Performance Puffed food and confectionery segments showed strong growth, offsetting jelly product decline, while seasoning products remained stable Segment Revenue and Profit Puffed food and confectionery & other products showed strong revenue growth, offsetting jelly product decline, with seasoning products stable | Business Segment | H1 2024 Revenue (Thousand Yuan) | H1 2023 Revenue (Thousand Yuan) | YoY Change | H1 2024 Gross Profit (Thousand Yuan) | | :--- | :--- | :--- | :--- | :--- | | Jelly Products | 338,625 | 381,904 | -11.3% | 106,286 | | Puffed Food Products | 153,500 | 126,109 | +21.7% | 44,542 | | Seasoning Products | 41,503 | 41,454 | +0.1% | 14,786 | | Confectionery and Other Products | 29,957 | 19,356 | +54.8% | 6,108 | Jelly Products Jelly product sales declined by 11.3% to RMB 339 million, but gross margin improved to 31.4% from cost efficiencies - Sales decreased by 11.3% to RMB 338.6 million, primarily due to the rise of emerging snack brand stores, leading to a decline in traditional channel sales not fully offset by new channel growth[73] - Gross margin increased from 30.4% to 31.4%, mainly due to a slight decrease in some raw material costs and improved production management efficiency[73] Puffed Food Products Puffed food sales grew strongly by 21.7% to RMB 154 million, driven by channel expansion, and gross margin improved to 29.0% - Sales increased by 21.7% year-on-year to RMB 153.5 million, primarily due to continuous expansion of sales channels, especially in new markets like South, Southwest, and Northwest China[74] - Gross margin increased from 26.8% to 29.0%, benefiting from economies of scale due to increased sales volume and improved production management efficiency[74] Seasoning Products Seasoning product sales remained stable at RMB 41.5 million, with gross margin improving to 35.6% due to lower raw material costs - Sales remained flat compared to the prior period, at approximately RMB 41.5 million[75] - Gross margin increased from 32.5% to 35.6%, primarily due to a decrease in major raw material costs compared to the prior period[75] Confectionery and Other Products Confectionery and other product sales surged by 54.6% to RMB 30 million, and gross margin improved to 20.4% - Sales increased by 54.6% year-on-year to RMB 30 million, primarily due to increased sales of new rice wine products[76] - Gross margin significantly increased from 13.7% to 20.4%, benefiting from improved economies of scale due to increased sales volume[76] Operational and Financial Condition Analysis Operational and financial analysis shows increased distribution costs, stable administrative expenses, improved liquidity, and positive operating cash flow Cost and Expense Analysis Distribution and selling expenses increased by 5.0% to RMB 67.4 million, while administrative expenses remained stable at RMB 68.7 million - Distribution and selling expenses increased by 5.0% year-on-year to RMB 67.4 million, primarily due to increased transportation costs from higher puffed food sales[77] - Administrative expenses slightly increased by 0.3% year-on-year to RMB 68.7 million, with increased depreciation from new production bases offset by approximately RMB 5 million reduction in staff costs due to departmental restructuring[78] Financial Position As of June 30, 2024, the Group maintained a robust financial position with increased net current assets and a net cash position | Metric | June 30, 2024 (Thousand Yuan) | December 31, 2023 (Thousand Yuan) | Change | | :--- | :--- | :--- | :--- | | Total Assets | 1,843,465 | 1,964,073 | -6.1% | | Total Liabilities | 609,343 | 762,735 | -20.1% | | Total Equity Attributable to Owners | 1,234,122 | 1,201,338 | +2.7% | | Net Current Assets | 204,646 | 153,485 | +33.3% | | Cash and Bank Balances | 498,144 | 520,736 | -4.3% | | Bank Loans | 271,862 | 292,294 | -7.0% | - The Group was in a net cash position at the end of the reporting period, with cash and bank balances of RMB 498 million and bank loans of RMB 272 million[87] Cash Flow and Capital Resources Operating cash flow significantly improved to a net inflow of RMB 42.4 million, with investing and financing activities resulting in net outflows | Cash Flow Item | H1 2024 (Thousand Yuan) | H1 2023 (Thousand Yuan) | | :--- | :--- | :--- | | Net Cash Generated from Operating Activities | 42,404 | (68,351) | | Net Cash Used in Investing Activities | (80,359) | (110,785) | | Net Cash (Used in)/Generated from Financing Activities | (20,432) | 74,001 | | Net Decrease in Cash and Cash Equivalents | (58,387) | (105,135) | - Capital expenditure for the first half was RMB 10.5 million, primarily for new production base construction and purchasing new production equipment in China[88] Strategic Investment Projects The Group maintained strategic investments without new additions, recognizing a fair value loss of RMB 1.3 million due to underperforming investees - No new strategic investment projects were added during the reporting period[79] - Due to the investee companies' operating performance falling short of expectations, the Group recognized a fair value loss of approximately RMB 1.3 million (prior period: RMB 0.6 million) through other comprehensive income during the reporting period[79] Business Strategy and Outlook The company's business strategy focuses on product innovation, channel expansion, production upgrades, internal management, and synergistic investments Product Development and Upgrade The company will continue to develop high-quality, healthy products, with specific strategies for each category to enhance gross margin and expand channels - The company is committed to developing natural, healthy, nutritious, and delicious high-quality products, increasing investment in product innovation, production facilities, and quality inspection equipment[80] - Product line strategies include: jelly (gross margin improvement), puffed food (market position consolidation), seasoning (catering channel expansion), and other snacks (healthy new product development)[80] Channel Expansion and Marketing The company is expanding into new channels, adjusting e-commerce strategy to high-margin products, and leveraging social media for brand visibility - Actively expanding into new channels such as snack brand stores, convenience stores, and campus stores; sales through new snack chain stores significantly increased during the reporting period, while traditional channel sales decreased accordingly[82] - E-commerce strategy adjusted to increase the sales proportion of high-margin self-produced products and utilize online platforms and live streaming for promotion[82] - Will fully utilize social media platforms like WeChat, Weibo, Douyin, and Xiaohongshu for marketing exposure to enhance brand visibility[81] Production Facilities and Operations The Group closed its loss-making Ningxia production base, incurring a RMB 6.1 million disposal loss, while investing in automation and upgrades - Due to continuous losses, the production base in Ningxia, Gansu Province, was closed, resulting in a one-time disposal loss of approximately RMB 6.1 million recorded during the reporting period[83] - Continuously enhancing automation capabilities through introducing advanced production lines and equipment upgrades to reduce labor costs and improve production efficiency[84] Future Outlook and Strategy The Group's future strategy focuses on product innovation, channel expansion, production upgrades, internal management, and synergistic investments - Will adhere to a multi-category and high cost-performance product strategy in the future, seizing consumer upgrade opportunities through continuous innovation[85] - Focus on expanding into new market channels such as e-commerce, snack brand stores, and catering to increase market penetration[85] - Continue to invest in production facility upgrades, talent development, and information management systems to enhance core competitiveness[86] Key Notes to Financial Statements Key notes cover financial risk management, share capital and dividends, and commitments, contingent liabilities, and asset pledges Financial Risk Management The Group faces market, credit, and liquidity risks, with no significant changes in policies, maintaining controllable liquidity - The Group's primary financial risks are market risk, credit risk, and liquidity risk, with no significant changes in risk management policies[20] - The Group has numerous customers, with no significant concentration of credit risk in accounts receivable, and credit terms typically range from 30 to 90 days[54] Share Capital and Dividends The Board decided not to declare an interim dividend, with 755,096,557 shares in issue and 5,348,000 unexercised share options - The Board decided not to declare an interim dividend for the six months ended June 30, 2024[49][93] - As of June 30, 2024, 5,348,000 share options remained unexercised under the share option scheme, with an exercise price of HKD 2.19 per share[57][58] Commitments and Asset Pledges As of June 30, 2024, the Group had RMB 33 million in capital commitments, no significant contingent liabilities, and pledged RMB 573 million in assets - As of June 30, 2024, total contracted but unprovided capital commitments amounted to RMB 33.03 million[63][89] - The Group pledged land use rights and buildings with a net book value of RMB 572.7 million as collateral for bank borrowings of RMB 216.2 million[90][51] - The Group had no significant contingent liabilities[89] Corporate Governance and Other Information This section covers corporate governance compliance, financial data review, and human resources details Corporate Governance and Compliance The company complied with Corporate Governance Code provisions, with interim results reviewed by the Audit Committee and auditor - The company consistently complied with all code provisions of the Corporate Governance Code during the reporting period[94] - The interim financial information has been reviewed by the company's Audit Committee and auditor, Tianzhi Hong Kong Certified Public Accountants Limited[98][3] Human Resources As of June 30, 2024, the Group had approximately 2,400 employees, with total employee benefit expenses decreasing by 7.5% due to cost-saving measures - As of June 30, 2024, the Group had approximately 2,400 employees, a decrease from 2,500 at the end of 2023[91] - Total employee benefit expenses were approximately RMB 97.6 million, a year-on-year decrease of approximately 7.5%, mainly due to cost-saving measures, departmental restructuring, and increased automation[91][40]