LYFEN(SH:603777)2024-08-29 09:41Financial Performance and Key Metrics - Revenue for the first half of 2024 decreased by 15.05% year-on-year to RMB 1,792,467,788.63[14] - Net profit attributable to shareholders of the listed company decreased by 72.56% year-on-year to RMB 14,924,483.62[14] - Net cash flow from operating activities increased by 49.24% year-on-year to RMB 105,048,937.04[14] - Basic earnings per share decreased by 75.00% year-on-year to RMB 0.04[15] - Weighted average return on equity decreased by 2.04 percentage points year-on-year to 0.81%[15] - Non-recurring gains and losses amounted to RMB 23,813,258.71, including government subsidies of RMB 10,570,279.86[16][17] - Total assets decreased by 7.45% compared to the end of the previous year to RMB 3,123,675,279.49[14] - Net profit attributable to shareholders after deducting non-recurring gains and losses decreased by 125.70% year-on-year to RMB -8,888,775.09[14] - Diluted earnings per share decreased by 75.00% year-on-year to RMB 0.04[15] - Equity attributable to shareholders of the listed company increased by 0.40% compared to the end of the previous year to RMB 1,847,249,324.33[14] - Total operating revenue for the reporting period was 1,792.47 million yuan, a decrease of 15.05% year-on-year, with net profit attributable to shareholders of 14.92 million yuan, a decrease of 72.56% year-on-year[24] - Revenue decreased by 15.05% to RMB 1,792,467,788.63 compared to the same period last year[27] - Operating costs decreased by 13.28% to RMB 1,052,536,860.83 due to reduced revenue[27] - R&D expenses decreased by 24.84% to RMB 4,981,096.83 due to changes in IT R&D investments[27] - Financial expenses increased by 243.56% to RMB 8,959,191.45 due to reduced interest income from idle funds[27] - Net cash flow from operating activities increased by 49.24% to RMB 105,048,937.04 due to cost-saving measures[27] - Investment income surged by 1,295.21% to RMB 14,515,358.81 due to changes in financial product redemptions[27] - Inventory decreased by 40.49% to RMB 196,766,205.37 due to holiday sales preparation[30] - Accounts payable decreased by 42.19% to RMB 320,897,127.25 due to changes in supplier payment cycles[30] - Overseas assets accounted for 0.95% of total assets, amounting to RMB 29,593,466.08[31] - Restricted cash totaled RMB 124,574,986.15, primarily due to prepaid card and third-party payment guarantees[32] - Total revenue for the first half of 2024 was 1,792,467,788.63 RMB, down 15.0% compared to 2,109,968,399.58 RMB in the same period of 2023[69] - Operating costs decreased by 12.6% from 2,064,380,828.21 RMB in H1 2023 to 1,803,176,763.70 RMB in H1 2024[69] - Cash and cash equivalents decreased by 11.0% from 529,023,358.28 RMB at the end of 2023 to 470,840,614.58 RMB as of June 30, 2024[66] - Accounts receivable decreased by 40.6% from 210,542,974.44 RMB at the end of 2023 to 125,091,830.16 RMB as of June 30, 2024[66] - Inventory decreased by 51.2% from 183,860,520.14 RMB at the end of 2023 to 89,652,583.64 RMB as of June 30, 2024[66] - Total current liabilities decreased by 19.1% from 1,390,757,934.94 RMB at the end of 2023 to 1,125,861,101.54 RMB as of June 30, 2024[67] - R&D expenses decreased by 24.8% from 6,627,734.77 RMB in H1 2023 to 4,981,096.83 RMB in H1 2024[69] - Sales expenses decreased by 10.1% from 561,984,239.03 RMB in H1 2023 to 505,433,675.49 RMB in H1 2024[69] - Net profit attributable to shareholders decreased by 3.3% from 251,355,569.90 RMB at the end of 2023 to 243,079,751.24 RMB as of June 30, 2024[68] - Other income increased to 11,049,034.82 RMB, up from 14,300,273.01 RMB in the previous period[70] - Investment income rose to 14,515,358.81 RMB, compared to a loss of 1,214,463.60 RMB in the previous period[70] - Operating profit decreased to 17,696,262.69 RMB from 71,083,346.35 RMB in the previous period[70] - Net profit attributable to parent company shareholders was 14,924,483.62 RMB, down from 54,380,853.99 RMB in the previous period[70] - Basic earnings per share were 0.04 RMB, compared to 0.16 RMB in the previous period[71] - Revenue for the first half of 2024 was 1,203,878,583.97 RMB, down from 1,393,387,710.51 RMB in the previous period[71] - Operating costs decreased to 999,765,930.36 RMB from 1,157,518,278.13 RMB in the previous period[71] - R&D expenses were 4,981,096.83 RMB, down from 6,928,230.99 RMB in the previous period[71] - Net profit for the first half of 2024 was 8,879,431.92 RMB, compared to 33,706,551.61 RMB in the previous period[72] - Comprehensive income for the first half of 2024 was 8,879,431.92 RMB, down from 33,706,551.61 RMB in the previous period[72] - Sales of goods and services received cash of RMB 2,022,344,406.63 in the first half of 2024, a decrease of 14.8% compared to RMB 2,373,861,424.10 in the same period of 2023[73] - Net cash flow from operating activities increased to RMB 105,048,937.04 in the first half of 2024, up 49.3% from RMB 70,388,701.23 in the same period of 2023[73] - Net cash flow from investing activities improved to RMB 7,330,113.52 in the first half of 2024, compared to a negative RMB 383,909,094.46 in the same period of 2023[74] - Net cash flow from financing activities was negative RMB 151,319,362.78 in the first half of 2024, an improvement from negative RMB 198,466,734.06 in the same period of 2023[74] - Cash and cash equivalents at the end of the period decreased to RMB 466,168,937.91 in the first half of 2024, down 31.0% from RMB 675,255,047.09 in the same period of 2023[74] - Parent company's net cash flow from operating activities was negative RMB 63,829,999.06 in the first half of 2024, an improvement from negative RMB 200,520,678.50 in the same period of 2023[75] - Parent company's net cash flow from investing activities was negative RMB 5,057,646.91 in the first half of 2024, an improvement from negative RMB 330,641,248.05 in the same period of 2023[76] - Parent company's net cash flow from financing activities was positive RMB 9,780,492.82 in the first half of 2024, compared to negative RMB 5,882,066.49 in the same period of 2023[76] - Parent company's cash and cash equivalents at the end of the period decreased to RMB 346,640,870.10 in the first half of 2024, down 41.4% from RMB 592,275,191.42 in the same period of 2023[76] - Total owner's equity at the end of the period was RMB 1,849,922,421.51, an increase of RMB 7,469,495.80 compared to the beginning of the period[77] - Comprehensive income for the period was RMB 14,924,483.62, with a minority shareholder share of RMB -1,895,905.23[77] - Capital reserve increased by RMB 3,552,455.70 during the period[77] - Retained earnings decreased by RMB 2,230,766.96, mainly due to profit distribution of RMB -17,155,250.58[77] - Minority shareholder equity increased by RMB 179,992.86, reaching RMB 2,673,097.18 at the end of the period[77] - Other comprehensive income decreased by RMB 5,967,814.20 during the period[77] - The company allocated RMB 556,814.17 for share-based payment during the period[77] - Other equity instruments showed no significant changes during the reporting period[77] - The company's total capital stock remained unchanged at RMB 336,559,908.00[77] - Special reserve increased by RMB 1,775,898.09 during the period[77] - Total owner's equity increased to RMB 1,861,311,496.09, up by RMB 49,901,758.90 compared to the beginning of the period[78] - Comprehensive income for the period amounted to RMB 54,380,853.99, contributing significantly to the increase in owner's equity[78] - Capital reserve increased by RMB 26,118,262.85, reflecting additional capital inflows during the period[78] - Undistributed profits rose to RMB 521,954,433.36, up by RMB 23,753,902.23 from the beginning of the period[78] - Parent company's owner's equity increased to RMB 1,573,680,543.11, with a net increase of RMB 1,244,451.24[79] - Parent company's comprehensive income for the period was RMB 8,879,431.92, contributing to the equity growth[79] - Parent company's capital reserve increased by RMB 3,552,455.70, driven by equity transactions[79] - Parent company's undistributed profits decreased by RMB 8,275,818.66 due to profit distribution[79] - Total owner's equity increased by 2.92% from RMB 1,542,827,599.34 to RMB 1,572,025,462.04[80] - Comprehensive income for the period amounted to RMB 33,706,551.61[80] - Capital reserve increased by RMB 26,118,262.85, contributing to the overall equity growth[80] - Retained earnings saw a net increase of RMB 3,079,599.85 after accounting for profit distribution[80] Business Operations and Strategy - The company operates in the leisure food industry, with a focus on direct and franchise stores, as well as group purchasing and special channels[6] - The company's products cover 12 major categories, including nuts, meat snacks, pastries, dried fruits, and more, with over 1,400 products sourced from over 20 countries and 25 provinces in China[19] - The company has developed over 30 children's snack products and 40 healthy snack products targeting urban white-collar consumers[19] - The company has established a comprehensive sales network including direct stores, franchise stores, distribution channels, and e-commerce platforms, achieving full-channel business synergy[19] - The company's community group buying business has rapidly grown, leveraging private domain live streaming and other channels to boost sales[20] - The company has expanded its "Jicui" product series in the East China market and is actively exploring overseas markets in North America and Southeast Asia[20] - The company has built an automated and digitalized warehousing and logistics base in Shanghai, supported by intelligent supply chain management systems[20] - The compound annual growth rate (CAGR) of China's leisure food industry market size is expected to be around 10% from 2023 to 2028, reaching approximately 2.6 trillion yuan by 2028[21] - The market share of meat snacks on Douyin surpassed that of Tmall and JD.com in 2023, narrowing the gap with other platforms in categories like nuts and dried fruits[21] - The company has established a full-channel network system including direct-operated stores, franchise stores, smart terminals, e-commerce, and the Laiyifen Community Purchase APP[22] - The company has developed a price risk control model for product channels, effectively determining the break-even points of products in various categories and optimizing low-efficiency product pools[22] - The company's product portfolio covers 12 core categories with over 1,400 products, including nuts, meat snacks, pastries, dried fruits, and seasonal items like mooncakes and New Year gift boxes[23] - The company has implemented a comprehensive quality control system covering the entire product lifecycle, including ISO9001 and BRCGSA&B standards, and has achieved CNAS certification for its testing center[23] - The company has developed a quality and safety traceability system, allowing consumers to track product information through QR codes on packaging, enhancing brand recognition[23] - The company has built a smart supply chain management system, optimizing demand forecasting, inventory sharing, and replenishment across all channels, reducing operational costs while ensuring product freshness[23] - The company has a total of 3,472 stores nationwide, including 1,775 directly operated stores and 1,697 franchise stores, with franchise stores accounting for 48.87% of the total[24] - The company's online sales performance improved slightly in categories such as festival gifts, meat, fruits and vegetables, and bean curd, although some online channels experienced a slight decline[25] - The company completed the construction and application of the Beidou system, integrating user operations across channels with a system based on "CDP+tags+MA+SCRM," enhancing supply chain responsiveness[24] - The company launched 100 TikTok instant delivery stores, extending live streaming hours to 12 hours, broadening user coverage and deepening user engagement[25] - As of the reporting period, 1,440 products can be traced via mobile phone, with an inbound inspection pass rate of 99.51% for 29,152 batches of products[25] - The company collaborated with Tencent to develop a sustainable CRM project for single stores, leveraging a large membership database and enterprise WeChat for precise marketing[26] - The company introduced the MPD system, which integrates multi-role collaboration and manages the entire product lifecycle, significantly enhancing competitiveness[26] - The company optimized its supply chain planning platform, achieving automated management across sales, demand, procurement, transfer, and replenishment, improving inventory management[26] - The company focused on lean management, promoting a profit-oriented responsibility system and deepening organizational reforms to enhance efficiency[26] Corporate Governance and Shareholder Information - The company's 2024 semi-annual report confirms the authenticity, accuracy, and completeness of the financial data, with no false records or misleading statements[2] - No profit distribution or capital reserve to share capital conversion plan was proposed for the 2024 semi-annual period[2] - The report includes forward-looking statements about future plans, which do not constitute a substantive commitment to investors[3] - The company has no non-operational fund occupation by controlling shareholders or related parties, and no violations in external guarantee decision-making procedures[3] - Key financial indicators and company information are detailed, including the company's Chinese and English names, legal representative, and contact details[8][9] - The company's registered and office addresses are located in Shanghai, with no changes reported during the period[10] - The semi-annual report is disclosed on the Shanghai Stock Exchange website and is available at the company's board office[11] - The company's A-shares are listed on the Shanghai Stock Exchange under the ticker symbol 603777[12] - Three shareholder meetings held in H1 2024, addressing financial management, governance, and employee incentives[39] - No profit distribution or capital reserve transfer plan for the period[40] - The company implemented the second phase of its employee stock ownership plan, involving 113 employees with a total subscription amount of RMB 12,596,015.70, corresponding to 1,646,538 shares, representing approximately 0.49% of the company's total shares[41] - The employee stock ownership plan was completed with shares transferred at a price of RMB 7.65 per share on June 6, 2024[41] - The company's employee stock ownership plan will unlock and distribute equity to holders 12 months after the last share transfer, subject to meeting relevant assessment conditions[41] - The company's total number of ordinary shareholders at the end of the reporting period is 28,968[57] - Shanghai Aiwu Enterprise Management Co., Ltd. holds 177,109,500 shares, accounting for 52.62% of the total shares, with 34,300,000 shares pledged[57] - Yu Ruifen holds 10,773,000 shares, accounting for 3.20% of the total shares[57] - Wang Xiaoming holds 9,238,848 shares, accounting for 2.75% of the total shares[57] - Shanghai Haiyongdeyu Management Consulting Partnership holds 8,555,400 shares, accounting for 2.54% of the total shares[57] - Shanghai Yingshui Investment Management Co., Ltd. - Yingshui Cruiser No. 10 Private Securities Investment Fund holds 6,700,000 shares, accounting for 1.99% of the total shares[57] - Shanghai Guosheng Capital Management Co., Ltd. - Shanghai Guosheng Haitong Equity Investment Fund Partnership holds 6,600,080 shares, accounting for 1.