RICHEN(603755)2024-08-21 09:23Financial Performance - Revenue for the first half of 2024 reached RMB 187.45 million, a 15.16% increase compared to the same period last year[14] - Net profit attributable to shareholders of the listed company was RMB 28.73 million, up 20.68% year-on-year[14] - Net cash flow from operating activities increased by 23.09% to RMB 26.97 million[14] - Basic earnings per share increased by 20.83% to 0.29 yuan per share compared to the same period last year[15] - Diluted earnings per share also increased by 20.83% to 0.29 yuan per share[15] - Non-recurring gains and losses amounted to 1,304,268.79 yuan, including government subsidies of 164,485.25 yuan and financial asset gains of 1,546,117.33 yuan[16][17] - Total revenue for the first half of 2024 reached 187,450,901.31 RMB, a 15.1% increase compared to 162,772,125.24 RMB in the same period of 2023[103] - Net profit for the first half of 2024 was 28,730,950.24 RMB, up 20.7% from 23,807,230.66 RMB in the first half of 2023[104] - Operating profit for the first half of 2024 was 32,796,930.32 RMB, a 16.8% increase from 28,083,742.09 RMB in the same period of 2023[104] - Revenue for the first half of 2024 reached 185,876,443.01 RMB, a 15.7% increase compared to 160,597,546.95 RMB in the same period of 2023[106] - Operating profit for the first half of 2024 was 32,850,520.95 RMB, up 4.6% from 31,405,273.17 RMB in the same period of 2023[108] - Net cash flow from operating activities in the first half of 2024 was 26,966,670.12 RMB, a 23.1% increase compared to 21,908,777.18 RMB in the same period of 2023[109] - Basic earnings per share (EPS) for the first half of 2024 was 0.29 RMB, up 20.8% from 0.24 RMB in the same period of 2023[105] - Total comprehensive income attributable to the parent company for the first half of 2024 was 28,730,950.24 RMB, a 20.7% increase compared to 23,807,230.66 RMB in the same period of 2023[105] - Sales revenue from goods and services in the first half of 2024 was 200,753,540.32 RMB, an 11.4% increase compared to 180,147,713.98 RMB in the same period of 2023[109] - Cost of goods sold for the first half of 2024 was 115,914,733.26 RMB, an 18.0% increase compared to 98,246,928.29 RMB in the same period of 2023[106] - Net profit for the first half of 2024 was 28,047,168.33 RMB, a 2.1% increase compared to 27,481,824.90 RMB in the same period of 2023[108] - Total comprehensive income for the period was RMB 23,807,230.66[116] - Comprehensive income for the parent company was RMB 28,047,168.33[117] - Comprehensive income for the period amounts to RMB 27,481,824.90[119] Assets and Liabilities - Total assets as of the end of the reporting period were RMB 963.15 million, a slight increase of 0.09% compared to the end of the previous year[14] - Cash and cash equivalents increased by 318.79% to RMB 185.36 million, mainly due to the maturity of financial products[51][52] - Trading financial assets decreased by 100% to RMB 0, primarily due to the maturity of financial products[51][52] - Other non-current financial assets decreased by 50% to RMB 20 million, mainly due to the recovery of part of the industrial investment fund[51][52] - Fixed assets increased by 159.17% to RMB 171.29 million, mainly due to the transfer of construction in progress to fixed assets[51][52] - Other non-current assets increased by 700.29% to RMB 34.57 million, mainly due to an increase in prepaid equipment payments[51][52] - Employee benefits payable decreased by 31.97% to RMB 6.45 million, mainly due to the payment of the previous year's year-end bonus[51][52] - Non-current liabilities due within one year decreased by 96.28% to RMB 348,409.83, mainly due to the repayment of bank loans[51][52] - Total assets of Richen Food Sales (Shanghai) Co., Ltd. were RMB 16.10 million, with a net loss of RMB 4.91 million[58] - Total assets of Richen Food (Jiaxing) Co., Ltd. were RMB 470.50 million, with a net profit of RMB 992,600[59] - Total assets as of June 2024 stood at 880,447,633.28 RMB, slightly down from 882,135,568.27 RMB at the end of 2023[101] - Total liabilities decreased to 182,361,035.09 RMB in June 2024 from 184,118,509.20 RMB at the end of 2023[102] - Long-term equity investments remained stable at 437,915,519.06 RMB in June 2024, compared to 437,594,672.50 RMB at the end of 2023[101] - Fixed assets increased significantly to 170,402,615.75 RMB in June 2024 from 65,982,098.97 RMB at the end of 2023, reflecting capital expenditure[101] - Short-term borrowings rose to 105,347,885.61 RMB in June 2024 from 86,633,965.98 RMB at the end of 2023[101] - Total equity slightly increased to 698,086,598.19 RMB in June 2024 from 698,017,059.07 RMB at the end of 2023[102] - The company's total assets increased slightly from 962.3 million yuan to 963.15 million yuan, showing a marginal growth of 0.09%[97][98][99] - Cash and cash equivalents surged significantly from 44.26 million yuan to 185.36 million yuan, a 318.8% increase[97] - Fixed assets grew substantially from 66.09 million yuan to 171.29 million yuan, representing a 159.1% increase[97] - Short-term borrowings rose from 86.63 million yuan to 105.35 million yuan, a 21.6% increase[98] - Accounts receivable remained relatively stable, increasing slightly from 69.29 million yuan to 70.42 million yuan, a 1.6% growth[97] - Inventory decreased marginally from 31.94 million yuan to 31.61 million yuan, a 1% reduction[97] - Long-term equity investments remained nearly unchanged at approximately 100.14 million yuan[97] - Total liabilities showed minimal change, decreasing slightly from 260.66 million yuan to 260.75 million yuan[98][99] - Retained earnings increased from 198.95 million yuan to 227.68 million yuan, a 14.4% growth[99] - The company's capital reserve grew from 354.77 million yuan to 356.96 million yuan, a 0.6% increase[99] Business Operations and Strategy - The company's main business involves compound seasonings, including solid, liquid, and semi-solid forms[6] - The company has partnerships with major food and beverage chains such as Xiabu Xiabu, Ajisen Ramen, and Yuku[6] - The company's main products include sauce-based seasonings, powder-based seasonings, and a small amount of food additives, with over a thousand varieties[18] - The company employs a "sales-to-production, production-to-purchase" procurement model, utilizing SAP systems for inventory and production planning[19] - Production is based on a "sales-to-production" model, with a flexible production management system for customized seasoning solutions[20] - Sales are primarily direct, targeting food processing and chain餐饮 enterprises, with some products sold through自有品牌 "味之物语" in商超 and电商 platforms[21] - The company also uses a经销 model to expand market coverage through经销商 networks, focusing on商超,流通市场, and small餐饮 enterprises[22] - Customized酱汁类调味料 products include腌制酱, 涂抹酱, 拌面酱, and火锅料, catering to食品加工 and餐饮企业 needs[23] - Powder-based调味料 products include裹粉裹浆, 腌制类调味粉, and复合汤粉, used in油炸类, 腌制类, and烧烤类 products[24] - The company's main target markets include: ① export and domestic sales markets for prepared foods; ② domestic catering, especially chain catering markets; ③ domestic retail terminal consumer markets; ④ domestic pre-made dishes and baking premix markets[35] - The company is one of the earliest professional compound seasoning enterprises in China, with a first-mover advantage. It has long-term cooperation with major domestic and international food industrial enterprises, and its market reputation and market share continue to grow[36] - The company has a significant advantage in the food processing channel, with a well-established multi-channel market layout. It has developed a stable customer base and a good market reputation, and its market share continues to increase[37] - The company has leading product R&D capabilities and can quickly respond to customer needs. It has a strong R&D team that continuously tracks and analyzes the catering market and consumer preferences, optimizing product flavors and production processes[38] - The company has a strict safety and quality control management system, ensuring product quality. It has established a comprehensive quality control system and a "four-ring-one-chain" food safety quality traceability system[40] - The company has an experienced management team with over 10 years of experience in the seasoning industry, providing a solid foundation for long-term development[41] - The company is committed to becoming a leading enterprise in the seasoning industry driven by digitalization, with a focus on upgrading digital workshops and enhancing supply chain management capabilities[42] - The company is advancing digital transformation, optimizing systems like MES and SAP to enhance supply chain management and operational efficiency[46] - The Shanghai operation center has been put into operation, serving as a sales management and R&D experience hub for the Yangtze River Delta market[47] - The company's "Weiwuzhiyu" brand has seen increasing recognition through offline and online channels, including Douyin, JD.com, Tmall, and Pinduoduo[45] - The company is focusing on customized compound seasoning solutions, with a dedicated R&D team for product development and formula improvements, but faces challenges in market acceptance and promotion[65] - The company is expanding its marketing channels, including supermarkets and e-commerce platforms like Douyin, JD.com, Tmall, and Pinduoduo, to target individual consumers and enhance brand influence[66] - The company's efforts to convert individual consumers into direct customers through supermarket and e-commerce channels have not yet achieved significant success, potentially impacting its competitive position[67] Industry and Market Trends - The compound seasoning industry in China is in the early stage of rapid growth, with market penetration increasing quickly, but still lags behind developed countries in terms of penetration rate[26] - The catering industry in China has grown from 2.9 trillion yuan in 2014 to 5.2 trillion yuan in 2023, maintaining a stable growth rate of around 10%, providing a stable growth space for compound seasonings[27] - The chain rate of the catering market in China increased from 15% in 2020 to 21% in 2023, with faster growth in third-tier and below cities compared to first and second-tier cities[28] - The CR5 and CR10 of China's seasoning industry in 2021 were 18.8% and 26.6% respectively, significantly lower than the 46.4% and 61.6% in the US and 26.1% and 36.5% in Japan, indicating room for further concentration in the Chinese market[30] - The development of cold chain logistics and commercial retail provides important support for the compound seasoning industry, ensuring taste stability and reducing transportation costs[29] - The online sales channel is becoming increasingly important for compound seasoning brands, especially for brand exposure and consumer communication, although offline channels remain dominant[32] - The compound seasoning industry is transitioning from traditional offline distribution channels to a new retail system combining online and offline channels[32] - The demand for compound seasonings is increasing due to the fast-paced lifestyle of younger consumers, who prefer convenient and standardized products[28] - The catering industry's trend towards standardization and fast food is driving the growth of the compound seasoning industry[27] - The compound seasoning industry is expected to see further concentration due to improved industry standards, increased brand awareness, and intensified competition[31] - The compound seasoning industry is experiencing rapid growth due to the development of the domestic catering industry and centralized procurement models, but the market remains fragmented with intense competition[64] Corporate Governance and Shareholder Information - The company's registered and office address remains unchanged at No. 20 Longshan Road, Qingdao Environmental Protection Industrial Park, Jimo District, Qingdao[11] - The company's website and email address for investor relations remain unchanged at www.richen-qd.cn and rcspzqb@richen.com, respectively[11] - The company's stock is listed on the Shanghai Stock Exchange under the ticker symbol 603755[13] - The company held its 2023 Annual General Meeting on April 19, 2024, approving various reports and proposals, including the 2023 financial report and the 2024 executive compensation plan[68] - No profit distribution or capital reserve conversion plan was proposed for the first half of 2024[69] - The company canceled 602,896 stock options from the 2021 incentive plan and 621,000 stock options from the 2022 incentive plan due to unmet conditions and changes in employee status[70] - The company's控股股东承诺每年减持股份不超过上年度末所持公司股份总数的25%, with减持价格不低于首次公开发行股票价格[77] - The company's实际控制人承诺在任职期间及离职后6个月内,每年间接转让股份不超过所持公司股份总数的25%[77] - The company's董事、监事、高级管理人员承诺在任职期间及离职后6个月内,每年间接转让股份不超过所持公司股份总数的25%[77] - The company's控股股东承诺减持股份将遵守相关法律法规,并及时履行信息披露义务[78] - The company's total guarantee amount (including guarantees for subsidiaries) is 4,034.78 million yuan, accounting for 5.74% of the company's net assets[84] - The total amount of guarantees provided to subsidiaries during the reporting period is 4,034.78 million yuan[84] - The company's total raised funds from the initial public offering is 38,716.20 million yuan, with a net amount of 34,266.06 million yuan after deducting issuance costs[85] - As of the reporting period, the cumulative investment in raised funds is 24,640.91 million yuan, with an investment progress of 71.91%[85] - The investment amount in the current year is 3,736.01 million yuan, accounting for 10.90% of the total raised funds[85] - The company has invested RMB 2,998.12 million in the construction of a 15,000-ton compound seasoning production base, with a cumulative investment of RMB 13,114.28 million, achieving 78.54% of the planned investment[86] - The company has invested RMB 651.29 million in the construction of a 5,000-ton soup extract production line, with a cumulative investment of RMB 6,428.86 million, achieving 58.72% of the planned investment[86] - The marketing network construction project has been completed with a cumulative investment of RMB 2,992.74 million, achieving 79.83% of the planned investment and leaving a surplus of RMB 1,145.34 million[86] - The technology center upgrade project has been completed with a cumulative investment of RMB 2,105.03 million, achieving 73.31% of the planned investment and leaving a surplus of RMB 1,058.00 million[86] - The company has used RMB 3,736.01 million in the first half of 2024 for various investment projects, with a cumulative investment of RMB 24,640.91 million[86] - The company has completed a share repurchase plan, repurchasing 1,420,000 shares at an average price of RMB 21.24 per share, totaling RMB 30,167,647.66[88] - The company has 5,962 ordinary shareholders as of the end of the reporting period[89] - The largest shareholder, Qingdao Boya Investment Holding Co., Ltd., holds 50.69% of the company's shares, with 22,560,500 shares pledged[89] - The second-largest shareholder, Zhang Huajun, holds 9.11% of the company's shares, with 3,610,000 shares pledged[89] - The company has no changes in its share capital structure during the reporting period[89] - Beijing Huano Investment Management Co., Ltd. - Huano Investment Taiding No. 1 Private Securities Investment Fund holds 2,238,500 shares, accounting for 2.27% of the total shares[90] - Qingdao Richen Food Co., Ltd. repurchase special securities account holds 1,420,000 shares, accounting for 1.44% of the total shares[90] - Zhang Huajun, the actual controller, holds 8,980,000 shares, accounting for 9.11% of the total shares, and holds 95% of the shares in Qingdao Boya Investment Holding Co., Ltd.[90][92] - Zhang Huajun increased his shareholding by 4,000,000 shares through a share transfer agreement with Qingdao Boya, bringing his total holdings to 8,980,000 shares[92] - Qingdao Boya transferred 2,000,000 shares (2.03% of total shares) to Zhang Huajun on January 25, 2024, and another 2,000,000 shares on March 7, 2024