朝云集团(06601) - 2024 - 中期业绩

Financial and Business Summary Financial Summary The company achieved robust financial growth in H1 2024, with revenue up 10.3% to RMB 1.249 billion, profit for the period increasing 29.6% to RMB 176 million, and basic EPS rising 31.4%, reflecting enhanced profitability Financial Summary for the Six Months Ended June 30, 2024 | Metric | Six Months Ended June 30, 2024 (RMB K) | Six Months Ended June 30, 2023 (RMB K) | Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 1,249,136 | 1,132,761 | +10.3% | | Gross Profit | 579,011 | 467,781 | +23.8% | | Profit Before Tax | 220,065 | 174,078 | +26.4% | | Profit for the Period | 175,873 | 135,700 | +29.6% | | Basic Earnings Per Share (cents) | 13.46 | 10.24 | +31.4% | Business Summary In H1 2024, the Group achieved comprehensive business improvement with simultaneous growth in revenue, profit, and gross profit margin, driven by 18.9% online and 6.5% offline channel growth, while maintaining a stable 40.0% interim dividend payout - Overall revenue steadily increased by 10.3% to RMB 1.249 billion[2] - Both online and offline channels achieved growth, with online channel revenue increasing by 18.9% year-on-year and offline channels growing by 6.5%[2] - Profitability significantly improved, with profit for the period increasing by 29.6% year-on-year and gross profit margin rising by 5.1 percentage points[2] - The Board resolved to declare an interim dividend of RMB 0.0538 per share, maintaining a dividend payout ratio of 40.0%[2] Business Overview and Outlook Business Overview In H1 2024, the Group achieved high-quality growth driven by 11.5% revenue increase in home care products, rapid online channel development, and steady offline growth, with product innovation and supply chain reform enhancing profitability, and core insecticide and mosquito repellent products maintaining market leadership for ten consecutive years Revenue Breakdown by Product Category (Six Months Ended June 30, 2024) | Product Category | Revenue (RMB M) | Year-on-Year Change (%) | | :--- | :--- | :--- | | Home Care Products | 1,163.6 | +11.5% | | Pet and Pet Products | 47.6 | +5.3% | | Personal Care Products | 34.8 | -18.4% | Revenue Breakdown by Sales Channel (Six Months Ended June 30, 2024) | Sales Channel | Revenue (RMB M) | Year-on-Year Change (%) | | :--- | :--- | :--- | | Online Channels | 405.9 | +18.9% | | Offline Channels | 843.3 | +6.5% | - The Group achieved performance growth through multiple initiatives, including developing new e-commerce channels, strengthening offline distribution, product innovation to create high-margin bestsellers, and supply chain reform for cost reduction and efficiency improvement[3][4] - According to NielsenIQ data, the Group's insecticide and mosquito repellent products have ranked first in overall market share in China for ten consecutive years[4] Business Outlook Looking ahead to H2 2024, the company will continue its 'high-quality, sustainable, and stable profit' strategy, focusing on leveraging the peak home care season, developing new e-commerce, optimizing product and channel structures for profit, strengthening R&D, and actively seeking M&A opportunities while maintaining a high dividend payout - Revenue growth drivers include leveraging the peak season for home care products and continuing high-quality development of new e-commerce channels[5] - Profit growth drivers include increasing the sales proportion of high-margin products, optimizing channel investment efficiency, and reducing supply chain costs[6] - Strategic initiatives include strengthening technology R&D, team incentives, and actively pursuing M&A opportunities in the pet and fast-moving consumer goods industries[6] - Shareholder returns are prioritized through a commitment to high and stable dividend payout policies[6] Management Discussion and Analysis Financial Review In H1 2024, Group revenue increased 10.3% to RMB 1.249 billion, driven by 11.5% growth in home care products; gross profit rose 23.8%, with gross profit margin improving from 41.3% to 46.4%; selling and distribution expenses grew 20.0%; and profit for the period increased 29.6% to RMB 176 million, with net profit margin rising from 12.0% to 14.1% Revenue Analysis Total revenue increased 10.3% year-on-year to RMB 1.249 billion, with core home care products growing 11.5% and accounting for 93.1% of total revenue, while online channels grew 18.9% to 32.5% of total revenue, and offline channels grew 6.5% to 67.5% Revenue by Product Category (Six Months Ended June 30) | Product Category | 2024 (RMB K) | 2023 (RMB K) | Change (%) | | :--- | :--- | :--- | :--- | | Home Care | 1,163,557 | 1,043,854 | +11.5% | | Pet and Pet Products | 47,633 | 45,243 | +5.3% | | Personal Care | 34,752 | 42,596 | -18.4% | | Total | 1,249,136 | 1,132,761 | +10.3% | Revenue by Sales Channel (Six Months Ended June 30) | Sales Channel | 2024 (RMB K) | 2023 (RMB K) | Change (%) | | :--- | :--- | :--- | :--- | | Online Channels | 405,854 | 341,297 | +18.9% | | Offline Channels | 843,282 | 791,464 | +6.5% | | Total | 1,249,136 | 1,132,761 | +10.3% | Gross Profit and Gross Profit Margin Analysis The Group's overall gross profit increased 23.8% year-on-year to RMB 579 million, with gross profit margin significantly improving by 5.1 percentage points to 46.4%, as all core business segments and channels, including home care, pet products, online, and offline, recorded margin growth - Overall gross profit margin increased from 41.3% to 46.4%, primarily due to enhanced brand power, optimized product category and channel structure, and improved supply chain operational efficiency[40] Gross Profit Margin by Product Category (Six Months Ended June 30) | Product Category | 2024 Gross Profit Margin (%) | 2023 Gross Profit Margin (%) | | :--- | :--- | :--- | | Home Care | 46.4% | 41.2% | | Pet and Pet Products | 49.5% | 45.4% | | Personal Care | 42.3% | 42.6% | Gross Profit Margin by Sales Channel (Six Months Ended June 30) | Sales Channel | 2024 Gross Profit Margin (%) | 2023 Gross Profit Margin (%) | | :--- | :--- | :--- | | Online Channels | 54.4% | 48.1% | | Offline Channels | 42.5% | 38.4% | Operating Expenses and Other Gains/Losses Analysis Selling and distribution expenses increased 20.0% year-on-year to RMB 318 million due to business growth; administrative expenses slightly increased 2.6% to RMB 86.8 million due to goodwill impairment; and other gains and losses recorded a RMB 11.7 million loss, compared to a RMB 3.3 million gain in the prior period, mainly due to fair value changes in investments and exchange rate fluctuations - Selling and distribution expenses increased by 20.0% year-on-year to RMB 317.7 million, consistent with business growth[46] - Administrative expenses increased by 2.6% year-on-year to RMB 86.8 million, primarily due to a goodwill impairment loss[47] - Other losses of RMB 11.7 million were recorded (compared to a gain of RMB 3.3 million in the prior period), mainly related to fair value changes in investments and exchange rate fluctuations[48] Profit and Cash Flow Analysis Benefiting from revenue growth and improved gross profit margin, profit before tax increased 26.4% year-on-year to RMB 220 million; profit for the period grew 29.6% to RMB 176 million, with net profit margin rising from 12.0% to 14.1%; and net cash outflow from operating activities was RMB 160 million, compared to an outflow of RMB 74 million in the prior period - Profit before tax increased by 26.4% year-on-year to RMB 220.1 million[50] - Profit for the period increased by 29.6% year-on-year to RMB 175.9 million, with net profit margin growing from 12.0% to 14.1%[52] - Net cash outflow from operating activities was RMB 159.7 million, compared to a net outflow of RMB 74 million in the prior period[53] Financial Position and Capital Management As of June 30, 2024, the Group maintained a robust financial position with total cash, cash equivalents, and time deposits of RMB 2.665 billion; the gearing ratio slightly increased from 1.0% at year-end to 1.1%, with no significant investments, asset pledges, or material contingent liabilities, and a stable treasury policy to maintain sufficient financial resources - As of June 30, 2024, total cash, cash equivalents, and time deposits amounted to RMB 2.6647 billion[55] - The gearing ratio slightly increased from 1.0% at the end of 2023 to 1.1% as of June 30, 2024[56] - The Group primarily operates in China, with most transactions settled in RMB, and foreign exchange risk mainly arises from USD and HKD deposits[60] Condensed Consolidated Financial Statements Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income During the reporting period, the company's revenue was RMB 1.249 billion, gross profit was RMB 579 million, selling and distribution expenses were RMB 318 million, administrative expenses were RMB 86.79 million, resulting in profit before tax of RMB 220 million, profit for the period of RMB 176 million, and profit attributable to owners of the Company of RMB 179 million Condensed Consolidated Statement of Profit or Loss (Six Months Ended June 30) | Item (RMB K) | 2024 (Unaudited) | 2023 (Unaudited) | | :--- | :--- | :--- | | Revenue | 1,249,136 | 1,132,761 | | Cost of sales | (670,125) | (664,980) | | Gross Profit | 579,011 | 467,781 | | Selling and distribution expenses | (317,747) | (264,799) | | Administrative expenses | (86,789) | (84,581) | | Profit before tax | 220,065 | 174,078 | | Income tax expense | (44,192) | (38,378) | | Profit for the period | 175,873 | 135,700 | | Profit attributable to owners of the Company | 179,461 | 136,502 | Condensed Consolidated Statement of Financial Position As of June 30, 2024, the company's total assets were RMB 3.67 billion, total liabilities were RMB 643 million, and net assets were RMB 3.027 billion; current assets amounted to RMB 2.983 billion, predominantly comprising bank balances, cash, and time deposits, with current liabilities at RMB 612 million, indicating a healthy current ratio Summary of Condensed Consolidated Statement of Financial Position | Item (RMB K) | As of June 30, 2024 (Unaudited) | As of December 31, 2023 (Audited) | | :--- | :--- | :--- | | Non-current assets | 686,795 | 694,086 | | Current assets | 2,983,374 | 3,142,059 | | Total assets | 3,670,169 | 3,836,145 | | Current liabilities | 611,931 | 867,743 | | Non-current liabilities | 30,946 | 30,930 | | Total liabilities | 642,877 | 898,673 | | Net assets | 3,027,292 | 2,937,472 | | Total equity | 3,027,292 | 2,937,472 | Notes to Condensed Consolidated Financial Statements Revenue and Segment Information The company's revenue is recognized entirely at a point in time; home care products are the primary revenue source, accounting for over 93%; the company primarily operates in China, with nearly all revenue and non-current assets located there; and revenue from the single largest related customer group (Customer A) was RMB 114 million during the reporting period - The Group identifies its business as a single operating segment, primarily conducting operations in the People's Republic of China[17][18] - Revenue from major customer A (a group of entities under common control of the controlling shareholder) was RMB 113.6 million, accounting for approximately 9.1% of total revenue[19] Dividends The Board resolved to declare an interim dividend of RMB 0.0538 per ordinary share for H1 2024, totaling approximately RMB 71.73 million, maintaining a dividend payout ratio of 40.0%, consistent with the prior period - A final dividend of RMB 0.0640 per share, totaling approximately RMB 85.33 million, was declared for the year ended December 31, 2023[27] - The Board resolved to declare an interim dividend of RMB 0.0538 per ordinary share for the six months ended June 30, 2024, totaling approximately RMB 71.73 million[27] Earnings Per Share For the six months ended June 30, 2024, basic earnings per share were RMB 13.46 cents, a 31.4% increase from RMB 10.24 cents in the prior period, calculated based on profit attributable to owners of the Company of RMB 179 million and a weighted average of 1.333 billion ordinary shares Basic Earnings Per Share Calculation | Item | Six Months Ended June 30, 2024 | Six Months Ended June 30, 2023 | | :--- | :--- | :--- | | Profit attributable to owners of the Company (RMB K) | 179,461 | 136,502 | | Weighted average number of ordinary shares (K shares) | 1,333,334 | 1,333,334 | | Basic Earnings Per Share (RMB cents) | 13.46 | 10.24 | Other Information Use of Proceeds from Global Offering The company listed in March 2021, with net proceeds from the global offering of approximately RMB 2.419 billion; as of June 30, 2024, RMB 616 million had been utilized, with RMB 1.802 billion remaining unutilized, primarily earmarked for R&D, R&D center upgrades, overseas network and supply chain construction, and strategic acquisitions, with most expected to be fully utilized by the end of 2026 - Net proceeds from the global offering amounted to approximately RMB 2.4188 billion[64] - As of June 30, 2024, RMB 616.4 million had been cumulatively utilized, with RMB 1.8024 billion remaining unutilized[66] - Most of the unutilized net proceeds are deposited in reputable banks in Hong Kong or mainland China[66] Corporate Governance and Other Disclosures The company is committed to maintaining high corporate governance standards, complying with most code provisions during the reporting period, though the roles of Chairman and CEO are combined under Ms. Chen Danxia for leadership consistency and decision-making efficiency; the report also discloses post-reporting period events like director changes and confirms the audit committee's review of interim results - The roles of Chairman and Chief Executive Officer are not segregated, both held by Ms. Chen Danxia, an arrangement the Board believes ensures consistent leadership and efficient decision-making[69] - Changes occurred in executive directors and joint company secretaries subsequent to the reporting period[74] - The Audit Committee has reviewed these interim results, and the independent auditor has reviewed the interim financial information in accordance with relevant standards[75]