依依股份(001206) - 2024 Q2 - 季度财报

Important Notice, Table of Contents, and Definitions This section provides important disclaimers, outlines the report structure, and defines key terms used throughout the document Important Notice The Board of Directors, Supervisory Committee, and senior management ensure the accuracy and completeness of this semi-annual report, noting that future plans are not substantive commitments - The company plans to distribute a cash dividend of 2.70 Yuan per 10 shares (tax inclusive) to all shareholders based on the share capital as of June 30, 2024, with no bonus shares or capital reserve conversions[2] Definitions of Key Terms This chapter defines key terms used in the report, covering the company, its subsidiaries, major customers, business models, and other relevant parties - Major customers include internationally renowned retailers and e-commerce platforms such as PetSmart, Chewy, Walmart, Amazon, and Coupang (Korea)[5] - The company's business model primarily involves ODM (Original Design Manufacturer) and OEM (Original Equipment Manufacturer)[5] Company Profile and Key Financial Indicators This section introduces the company and presents its key financial performance metrics for the reporting period Company Profile Tianjin Yiyi Hygiene Products Co, Ltd (stock code: 001206) is listed on the Shenzhen Stock Exchange, with Gao Fuzhong as its legal representative Key Financial Indicators During the reporting period, the company achieved strong performance with revenue increasing by 29.31% and net profit attributable to shareholders surging by 111.71%, despite a 96.24% decrease in net cash flow from operating activities Key Financial Indicators (Million Yuan) | Indicator | Current Period (Million Yuan) | Prior Period (Million Yuan) | YoY Change | | :--- | :--- | :--- | :--- | | Operating Revenue | 812.48 | 628.34 | 29.31% | | Net Profit Attributable to Shareholders | 95.19 | 44.96 | 111.71% | | Net Profit Attributable to Shareholders (Excluding Non-recurring Gains/Losses) | 82.31 | 43.33 | 89.97% | | Net Cash Flow from Operating Activities | 3.90 | 103.71 | -96.24% | | Basic Earnings Per Share (Yuan/share) | 0.51 | 0.24 | 112.50% | | Weighted Average Return on Net Assets | 5.23% | 2.48% | Increased by 2.75 percentage points | | Total Assets | 1,992.99 | 1,981.19 | 0.60% (vs. end of prior year) | | Net Assets Attributable to Shareholders | 1,793.18 | 1,771.18 | 1.24% (vs. end of prior year) | - The significant decrease in net cash flow from operating activities is primarily due to two factors: 1) providing credit terms to new customers, which reduced cash received from sales; and 2) increased export orders leading to higher cash payments for goods and services[36] Non-recurring Gains and Losses The company's non-recurring gains and losses totaled 12.88 million Yuan during the reporting period, mainly from entrusted investments and fair value changes of financial assets Non-recurring Gains and Losses (Million Yuan) | Item | Amount (Million Yuan) | | :--- | :--- | | Gains/Losses from Disposal of Non-current Assets | 0.76 | | Government Subsidies | 0.26 | | Gains/Losses from Fair Value Changes of Financial Assets and Liabilities | 4.98 | | Gains/Losses from Entrusted Investment or Asset Management | 11.88 | | Other Non-operating Income and Expenses, Net | -0.70 | | Income Tax Impact | -4.29 | | Total | 12.88 | Management Discussion and Analysis This section provides a comprehensive analysis of the company's operations, financial condition, and key performance drivers during the reporting period Overview of Principal Business The company's core business involves R&D, production, and sales of disposable hygiene products (pet and personal) and non-woven fabrics, primarily through ODM/OEM exports, with pet hygiene products accounting for 93.93% of revenue Introduction to Principal Business The company specializes in R&D, production, and sales of disposable hygiene products (pet and personal) and non-woven fabrics, aiming to be a leader in the pet hygiene sector with products sold in nearly 40 countries - The company's principal business is the research, development, production, and sale of disposable hygiene products and non-woven fabrics, covering both pet and personal care sectors[18] Main Products and Uses The company's main products include disposable pet hygiene products (pads, diapers, waste bags) and personal hygiene products (adult/baby care pads, sanitary napkins), along with non-woven fabrics as raw materials Main Products and Uses | Product Category | Main Products | Main Functions and Uses | | :--- | :--- | :--- | | Disposable Pet Hygiene Products | Pet pads, pet diapers | Address pet excretion issues, maintain environmental hygiene, aid in training | | Disposable Personal Hygiene Products | Care pads (adult, baby) | Used for incontinence care, baby care, feminine hygiene, and postpartum care | | Non-woven Fabric | - | Main raw material for hygiene products, lightweight and environmentally friendly | Main Business Model The company operates on a "production-to-order" model with a robust supplier management system, focusing on ODM/OEM for international markets and a mix of direct sales, distribution, and proprietary brands domestically - Production Model: Primarily ODM/OEM, adopting a "production-to-order" strategy[22] - Sales Model: Primarily ODM/OEM for overseas markets; domestic sales through direct channels, distribution, e-commerce platforms for proprietary brands, and ODM/OEM services for domestic brands[23] Industry Development Status and Trends While the global pet industry is mature, China's market is rapidly growing, reaching 279.3 billion Yuan in 2023, with significant growth potential due to a lower pet ownership penetration rate (22%) compared to developed countries - In 2023, the consumption market size for urban pets (dogs and cats) in China reached 279.3 billion Yuan, a year-on-year increase of 3.2%[25] - China's pet penetration rate was approximately 22% in 2023, significantly lower than the United States (66%) and Europe (50%) in 2022, indicating vast growth potential[25] Market Competition Landscape and Company Position The Chinese pet products industry is fragmented but rapidly developing, and the company maintains a strong market position, with its pet disposable hygiene product exports accounting for 33.69% of China's total in H1 2024 - The company holds a significant market share in the export of disposable pet hygiene products, accounting for 33.69% in the first half of 2024, indicating a stable market position[27] Key Performance Drivers The company's performance growth is primarily driven by social factors like demographic shifts, economic factors such as rising disposable income, and policy support for civilized pet ownership - Social Drivers: Demographic shifts, including an aging population and the rise of the single economy, have increased emotional demand for pet companionship[28] - Economic Drivers: Growth in per capita disposable income has enhanced pet owners' purchasing power and willingness to spend[29][30] - Policy Drivers: The implementation of civilized pet ownership regulations has boosted demand for pet hygiene products, such as pet diapers and waste bags[30] Analysis of Core Competencies The company's core competencies include large-scale production (annual capacity of 4.6 billion pet pads), continuous R&D innovation, stable premium customer resources, stringent quality and cost control, and upstream supply chain integration - Scaled Production: Annual production capacity for pet pads has reached 4.6 billion pieces, with exports accounting for over 30% of similar domestic products[31] - Innovation and R&D: Successfully launched thousands of functional pet hygiene products with features such as fixed tabs, quick-drying, antibacterial properties, and bite resistance[32] - Customer Resources: Established long-term and stable cooperative relationships with major global retailers and brands including Amazon, PetSmart, Walmart, and Target[33] - Supply Chain Assurance: Production of non-woven fabric, a key raw material, through subsidiaries effectively ensures supply chain stability, product quality, and cost control[35] Analysis of Principal Business In H1 2024, the company's performance grew significantly due to the end of overseas customer destocking and new customer orders, with revenue up 29.31% and net profit up 111.71%, driven by pet hygiene products and international sales Financial Performance Indicators (Million Yuan) | Financial Indicator | Current Period (Million Yuan) | Prior Period (Million Yuan) | YoY Change | | :--- | :--- | :--- | :--- | | Operating Revenue | 812.48 | 628.34 | 29.31% | | Operating Cost | 659.08 | 544.43 | 21.06% | | Net Profit Attributable to Parent Company | 95.19 | 44.96 | 111.71% | Revenue Composition (H1 2024) | Category | Revenue (Million Yuan) | Share of Total Revenue | YoY Change | | :--- | :--- | :--- | :--- | | By Product | | | | | Pet Pads | 712.61 | 87.71% | 30.47% | | Pet Diapers | 46.90 | 5.77% | 13.25% | | By Region | | | | | Overseas | 758.79 | 93.39% | 29.35% | | Domestic | 53.70 | 6.61% | 28.71% | - The gross margin for disposable pet hygiene products increased from 14.11% in the prior period to 20.01%, an increase of 5.90 percentage points[38] Analysis of Non-Principal Business Non-principal business income primarily stemmed from investment activities, including 8.55 million Yuan from wealth management products and foreign currency derivatives, and 8.10 million Yuan from fair value changes, which are non-recurring Non-Principal Business Income (Million Yuan) | Item | Amount (Million Yuan) | Share of Total Profit | Reason for Formation | | :--- | :--- | :--- | :--- | | Investment Income | 8.55 | 6.82% | Investment income from wealth management products and foreign currency derivatives | | Gains/Losses from Fair Value Changes | 8.10 | 6.46% | Fair value changes of unexpired wealth management products and foreign currency derivatives | Analysis of Assets and Liabilities At the end of the reporting period, total assets remained stable, with accounts receivable increasing by 3.85 percentage points due to new customer credit terms, and cash decreasing by 5.71 percentage points due to reduced collections and increased wealth management product purchases - Accounts receivable significantly increased from 13.31% to 17.16% of total assets compared to the end of the previous year, primarily because new major customers, whose shipments began in April 2024, were granted 60-day credit terms[41] - Cash and cash equivalents decreased from 13.61% to 7.90% of total assets compared to the end of the previous year, mainly due to reduced sales collections from new customer credit terms and increased purchases of wealth management products[41] Analysis of Investment Status The company significantly reduced equity investments by 95% year-on-year, engaged in foreign exchange derivative investments for hedging, and fully utilized its 2021 IPO proceeds, with remaining funds from a terminated project permanently supplementing working capital - To mitigate foreign exchange risk, the company engaged in foreign exchange derivative transactions, with the period-end investment amount accounting for 22.87% of the company's net assets[50][51] - The company's proceeds from its 2021 initial public offering have been fully utilized, and all dedicated fundraising accounts have been closed[53] - Due to changes in market conditions, the planned "Hygiene Care Materials Project" was terminated, and its remaining raised funds of 202 million Yuan were permanently used to supplement working capital[58][59][63] Risks and Countermeasures The company faces operational risks including raw material price volatility, rising labor costs, customer concentration, exchange rate fluctuations, export tax rebate policy changes, and international trade shifts, addressed through various management and financial strategies - Raw Material Price Volatility Risk: Direct materials account for over 80% of the main business costs, making performance highly susceptible to price fluctuations[67] - Customer Concentration Risk: Sales to the top five customers accounted for 48.14% of main business revenue during the reporting period, indicating reliance on major clients[68] - Exchange Rate Fluctuation Risk: Products are primarily exported and settled in USD, so RMB exchange rate fluctuations have an uncertain impact on profitability[68] - International Situation Risk: Products exported to the United States were subject to an additional 7.5% tariff in June 2023, and future trade policy changes may have an impact[69] Corporate Governance This section details the company's corporate governance structure, including shareholder meetings and profit distribution plans Shareholder Meeting Information During the reporting period, the company held three shareholder meetings, including two extraordinary general meetings and one annual general meeting, with investor participation rates exceeding 56% Profit Distribution Plan The company proposed a 2024 semi-annual profit distribution plan to pay a cash dividend of 2.70 Yuan per 10 shares (tax inclusive), totaling an estimated 49.41 million Yuan, without bonus shares or capital reserve conversions Profit Distribution Plan | Distribution Plan | Details | | :--- | :--- | | Dividend per 10 shares (Yuan, tax inclusive) | 2.70 | | Cash Dividend Amount (Million Yuan, tax inclusive) | 49.41 | | Share Capital Base for Distribution Plan (Shares) | 182,986,021 | | Ratio of Total Cash Dividend to Total Profit Distribution | 100.00% | Environmental and Social Responsibility This section outlines the company's commitment to environmental protection and social responsibility initiatives Environmental Protection Status The company and its subsidiaries are not designated as key polluting entities and received no environmental administrative penalties during the reporting period, demonstrating a commitment to environmental management as a national "Green Factory" Social Responsibility The company actively fulfills its social responsibilities by safeguarding stakeholder interests and engaging in public welfare, including a 500,000 Yuan donation to support rural revitalization during the reporting period - In May 2024, the company donated 500,000 Yuan to a paired key assistance county to support East-West collaboration and rural revitalization[78] Significant Matters This section covers important events and commitments, including the fulfillment of previous pledges, major contracts, and other significant corporate actions Fulfillment of Commitments During the reporting period, all commitments made by the company's controlling shareholders, actual controllers, directors, supervisors, and senior management regarding share circulation restrictions, voluntary lock-ups, and share price stability during the initial public offering have been fulfilled Major Contracts and Their Fulfillment The company had no major trust, contracting, or guarantee agreements during the reporting period, utilizing leased facilities for operations and engaging in entrusted wealth management totaling 795 million Yuan using both raised and自有 funds Entrusted Wealth Management (Million Yuan) | Type | Source of Funds | Amount Incurred (Million Yuan) | Outstanding Balance (Million Yuan) | | :--- | :--- | :--- | :--- | | Bank Wealth Management Products | Raised Funds/Own Funds | 45.00 | 25.00 | | Brokerage Wealth Management Products | Raised Funds/Own Funds | 505.00 | 280.00 | | Other Categories | Own Funds | 245.00 | 195.00 | | Total | | 795.00 | 500.00 | Other Significant Matters Controlling shareholder, actual controller, Chairman, and General Manager Mr. Gao Fuzhong plans to increase his shareholding by no less than 10 million Yuan within six months from June 6, 2024, having already acquired 620,300 shares by the end of the reporting period - Controlling shareholder Mr. Gao Fuzhong plans to increase his stake by no less than 10 million Yuan, having purchased 620,300 shares by the end of the reporting period, representing 0.33% of the total share capital[95] Share Changes and Shareholder Information This section details changes in the company's share capital and provides an overview of its shareholder structure Share Changes During the reporting period, the company's restricted shares decreased by 16.65 million shares due to the lifting of initial public offering restrictions, with a corresponding increase in unrestricted shares, while total share capital remained at 184,893,808 shares - Shareholders Gao Fuzhong and Gao Jian had 17,115,173 restricted shares released on May 23, 2024[98] Shareholder Information As of the end of the reporting period, the company had 14,726 common shareholders, with a relatively concentrated equity structure where key controlling shareholders and related parties held significant stakes, and the company's buyback account was among the top ten shareholders Top Five Shareholders' Holdings | Shareholder Name | Shareholding Percentage | Number of Common Shares Held | | :--- | :--- | :--- | | Gao Fuzhong | 31.33% | 57,931,043 | | Lu Junmei | 12.06% | 22,299,900 | | Gao Jian | 6.03% | 11,149,947 | | Gao Bin | 3.02% | 5,574,975 | | Heze Qiaobeishengtai Investment Management Partnership (Limited Partnership) | 2.15% | 3,970,680 | Changes in Holdings of Directors, Supervisors, and Senior Management During the reporting period, no changes occurred in the shareholdings of directors, supervisors, and senior management, except for Chairman and General Manager Mr. Gao Fuzhong, who increased his holdings by 620,300 shares as part of his增持 plan - Chairman and General Manager Mr. Gao Fuzhong increased his shareholding by 620,300 shares during the period, bringing his total holdings to 57,931,043 shares at period-end[102] Preferred Shares Information The company had no preferred shares during the reporting period Bonds Information The company had no bond-related information during the reporting period Financial Report This section presents the company's unaudited financial statements for the first half of 2024, including balance sheets, income statements, and cash flow statements Audit Opinion This semi-annual financial report is unaudited Financial Statements This chapter provides the company's consolidated and parent company balance sheets, income statements, cash flow statements, and statements of changes in owners' equity for the first half of 2024 Consolidated Balance Sheet As of June 30, 2024, the company's total assets were 1.99 billion Yuan, total liabilities were 200 million Yuan, and equity attributable to owners was 1.79 billion Yuan, resulting in a debt-to-asset ratio of 10.03% Key Items from Consolidated Balance Sheet (Period-End Balance, Million Yuan) | Item | Amount (Million Yuan) | | :--- | :--- | | Assets | | | Total Current Assets | 1,224.93 | | Total Non-current Assets | 768.06 | | Total Assets | 1,992.99 | | Liabilities | | | Total Current Liabilities | 183.37 | | Total Non-current Liabilities | 16.44 | | Total Liabilities | 199.81 | | Owners' Equity | | | Total Owners' Equity Attributable to Parent Company | 1,793.18 | | Total Owners' Equity | 1,793.18 | Consolidated Income Statement In H1 2024, the company achieved total operating revenue of 812.48 million Yuan, operating profit of 126.09 million Yuan, and net profit of 95.19 million Yuan, representing a 111.71% year-on-year increase, with basic earnings per share of 0.51 Yuan Key Items from Consolidated Income Statement (H1 2024, Million Yuan) | Item | Amount (Million Yuan) | | :--- | :--- | | Total Operating Revenue | 812.48 | | Total Operating Costs | 704.62 | | Operating Profit | 126.09 | | Total Profit | 125.38 | | Net Profit | 95.19 | | Net Profit Attributable to Parent Company Shareholders | 95.19 | | Basic Earnings Per Share | 0.51 | Consolidated Cash Flow Statement In H1 2024, net cash flow from operating activities was 3.90 million Yuan, a significant decrease, while net cash outflows from investing and financing activities were 44.79 million Yuan and 74.88 million Yuan, respectively, leading to a net decrease in cash and cash equivalents of 112.16 million Yuan Key Items from Consolidated Cash Flow Statement (H1 2024, Million Yuan) | Item | Amount (Million Yuan) | | :--- | :--- | | Net Cash Flow from Operating Activities | 3.90 | | Net Cash Flow from Investing Activities | -44.79 | | Net Cash Flow from Financing Activities | -74.88 | | Effect of Exchange Rate Changes on Cash and Cash Equivalents | 3.61 | | Net Increase/Decrease in Cash and Cash Equivalents | -112.16 | Notes to Consolidated Financial Statements This chapter provides detailed explanations of key items in the consolidated financial statements, highlighting the company's high revenue dependence on pet hygiene products (93.93%) and overseas markets (93.39%), along with significant accounts receivable concentration Accounts Receivable As of the end of the reporting period, the book value of accounts receivable was 342 million Yuan, with 91.57% from overseas customers, and the top five customers accounted for 56.43% of the total, indicating high customer concentration - The total accounts receivable from the top five customers by period-end balance amounted to 193 million Yuan, representing 56.43% of the total accounts receivable balance at period-end[212] Operating Revenue and Operating Cost In H1 2024, principal business revenue was 811 million Yuan, with pet disposable hygiene products contributing 763 million Yuan (93.93% of total revenue) and overseas sales accounting for 759 million Yuan (93.39% of total revenue) Operating Revenue Breakdown (H1 2024, Million Yuan) | Contract Classification | Operating Revenue (Million Yuan) | Operating Cost (Million Yuan) | | :--- | :--- | :--- | | By Business Type | | | | Disposable Pet Hygiene Products | 763.19 | 610.46 | | Disposable Personal Hygiene Products | 10.41 | 7.62 | | Non-woven Fabric | 37.57 | 39.43 | | By Market or Customer Type | | | | Domestic | 53.70 | 52.83 | | Overseas | 758.79 | 606.25 | | Total | 812.48 | 659.08 | Supplementary Information This chapter provides details on non-recurring gains and losses, which totaled 12.88 million Yuan, and calculates key profitability metrics, including a weighted average return on net assets of 5.23% and basic earnings per share of 0.51 Yuan Return on Net Assets and Earnings Per Share | Profit for the Period | Weighted Average Return on Net Assets | Basic EPS (Yuan/share) | Diluted EPS (Yuan/share) | | :--- | :--- | :--- | :--- | | Net Profit Attributable to Common Shareholders of the Company | 5.23% | 0.51 | 0.51 | | Net Profit Attributable to Common Shareholders of the Company (Excluding Non-recurring Gains/Losses) | 4.53% | 0.45 | 0.45 |