Financial Performance - Revenue increased by 11.36% from RMB 951.20 million for the six months ended June 30, 2023, to RMB 1,059.30 million for the six months ended June 30, 2024[7]. - Gross profit increased by 5.41% from RMB 487.43 million for the six months ended June 30, 2023, to RMB 513.80 million for the six months ended June 30, 2024[7]. - Net profit decreased by 44.07% from RMB 107.37 million for the six months ended June 30, 2023[7]. - Profit for the period decreased by 44.07% from a net profit of RMB 107.37 million for the six months ended June 30, 2023 to a net profit of RMB 60.05 million for the six months ended June 30, 2024[32]. - Profit before taxation decreased to RMB 78,006, down 43.7% from RMB 138,873 in the prior year[100]. - Basic and diluted earnings per share were RMB 0.12, down from RMB 0.23 in the previous year[100]. - The net profit margin for the same period was 5.67%, a decrease from 11.29% in 2023[51]. - Return on equity for the six months ended June 30, 2024, was 7.81%, compared to 24.02% in the previous year[51]. Revenue Sources - Yan Palace's e-commerce channel revenue amounted to RMB 640.73 million, accounting for 60.49% of total revenue, representing a 21.89% increase compared to the first half of 2023[10]. - The total revenue from offline channels was RMB 418.57 million, making up 39.51% of total revenue, which is a decrease of 1.64% from the first half of 2023[11]. - Revenue from pure EBN products increased by 3.52% from RMB 894.86 million for the six months ended June 30, 2023, to RMB 926.32 million for the six months ended June 30, 2024[29]. - Revenue from EBN+ and +EBN products surged by 164.4% from RMB 47.16 million to RMB 124.7 million during the same period, driven by increased sales of EBN porridge and newly launched skincare products[29]. - Revenue from other products decreased by 9.79% from RMB 9.19 million to RMB 8.29 million, attributed to a focus on EBN+ and +EBN products[29]. Operational Efficiency - The management is committed to improving operational efficiency and profitability despite the decline in net profit[8]. - Selling and distribution expenses increased by 38.45% from RMB 263.82 million to RMB 365.27 million, primarily due to higher advertising expenses[31]. - Administrative expenses decreased by 18.20% from RMB 76.53 million to RMB 62.60 million, mainly due to reduced professional party expenses related to the listing[31]. - Research and development expenses increased by 3.60% from RMB 11.93 million for the six months ended June 30, 2023 to RMB 12.36 million for the six months ended June 30, 2024[32]. Market Presence and Strategy - The company aims to expand its market presence through strategic initiatives[8]. - The company plans to enhance brand potential, develop diversified product lines, and expand its sales network to meet various consumer needs[21][22]. - The company aims to promote high-quality development in the beauty and health industry by exploring new product application scenarios and market opportunities[21][22]. - The company is focused on enhancing its product offerings through research and development of new products and technologies[197]. Shareholding and Corporate Governance - The company has substantial shareholders, including Guangyao Tianxiang LP, established on July 29, 2015, and Hongyan Investment LP, established on October 20, 2014[199]. - The Company has adopted the CG Code as its own code of corporate governance[84]. - The Audit Committee comprises three independent non-executive Directors, with Mr. CHEN Aihua serving as the chairman[85]. - The Company has complied with all applicable code provisions as set out in the CG Code during the reporting period[84]. Employee Incentive Scheme - The Employee Incentive Scheme aims to attract and retain talent while aligning the interests of shareholders and management[65]. - The H Share Incentive Scheme was approved and adopted on March 25, 2024, to incentivize management personnel and core technical employees[89]. - The management committee overseeing the Employee Incentive Scheme consists of eight members, including the chairman and other senior executives[70]. - Grantees under the scheme must retain at least 10% of the total shares subscribed during their employment to mitigate short selling risks[74]. Economic Context - In the first half of 2024, China's GDP reached RMB 61.7 trillion, growing by 5.0% year-on-year, indicating a stable economic outlook[9]. - The total retail sales of consumer goods in China increased by 3.7% year-on-year, reflecting a recovery in domestic demand[9]. Product Development - The company launched several new products in the first half of 2024, including the Raw Coconut Peach Gum EBN and the whole ginseng EBN beverage, with bird's nest peptides-related products generating sales revenue of RMB 19.47 million[16][17]. - The company has launched EBN+ products, which are ready-to-serve edible bird's nest products enhanced with additional ingredients, featuring an EBN feed rate of 1% to 5%[197]. - The nutritional profile of edible bird's nests includes sialic acid, amino acids, collagen, glycoproteins, antioxidants, and various minerals, which are attributed with multiple health benefits[197]. Financial Position - Current assets decreased from approximately RMB 1,154.5 million as of December 31, 2023 to approximately RMB 939.56 million as of June 30, 2024, primarily due to the use of proceeds from the Global Offering and payment of dividends[33]. - Cash and cash equivalents decreased by 23.74% from RMB 537.1 million as of December 31, 2023 to RMB 409.59 million as of June 30, 2024, mainly due to the use of proceeds from the Global Offering and payment of dividends[33]. - Total assets amounted to RMB 1,360,605,000, a decrease from RMB 1,464,014,000 as of December 31, 2023, representing a decline of approximately 7.1%[102]. - Total equity attributable to equity shareholders of the Company was RMB 719,999,000, down from RMB 769,671,000, representing a decrease of about 6.5%[103].
燕之屋(01497) - 2024 - 中期财报