Product Performance - The company achieved significant growth in its core product "Walnut Sesame Black Bean Powder," which has been recognized as the top-selling item in the functional grain powder category for several consecutive years[8]. - The "Health Gift Box" product line saw encouraging results, with tailored products developed for different consumer channels, enhancing brand recognition[8]. - The ancient formula product "Moisture-Free Traces" experienced multiple sales growth compared to the same period in 2023, indicating strong consumer demand[8]. Sales and Distribution - In the first three quarters of 2024, offline sales in the fast-moving consumer goods sector grew by 1.8% year-on-year, while e-commerce channels saw a decline of 0.6%[9]. - The company's direct sales strategy focuses on improving operational efficiency and enhancing the shopping experience in its direct-operated counters[10]. - The company is actively expanding its presence on traditional and interest-based e-commerce platforms, establishing flagship and specialty stores to increase market penetration[11]. - The company participated in nine major marketing events throughout the year, including "618" and "Double Eleven," to boost brand awareness and sales[11]. Financial Performance - For the fiscal year ending December 31, 2024, the company reported revenue of RMB 2,060.4 million, an increase of 11.7% compared to RMB 1,845.3 million in 2023[15]. - Offline sales accounted for 55.3% of total revenue in 2024, up from 54.2% in 2023, while online sales decreased slightly to 44.7% from 45.8%[17]. - Gross profit increased from approximately RMB 1,181.5 million in 2023 to about RMB 1,356.3 million in 2024, with the gross margin rising from 64.0% to 65.8%[18]. - The company's net profit for the year ended December 31, 2024, was approximately RMB 187.9 million, representing a growth of about 23.2% from RMB 152.4 million in 2023[27]. - Sales and distribution expenses rose from approximately RMB 897.1 million in 2023 to about RMB 1,043.4 million in 2024, primarily due to increased promotional expenses related to sales growth[20]. Assets and Liabilities - The company’s trade receivables increased to RMB 223.7 million in 2024 from RMB 217.8 million in 2023, with trade receivables turnover days improving to 39 days from 40 days[29]. - The company’s inventory remained stable at approximately RMB 94.6 million in 2024, compared to RMB 93.5 million in 2023, with a slight increase attributed to sales growth[29]. - The company’s current assets net value as of December 31, 2024, was RMB 1,182.7 million, compared to RMB 1,033.5 million as of December 31, 2023[33]. - The company had no contingent liabilities as of December 31, 2024, consistent with the previous year[36]. - The company had no pledged assets as of December 31, 2024, consistent with the previous year[37]. Corporate Governance - The company has adopted the principles and code provisions of the corporate governance code as its own corporate governance code[53]. - The board believes that the company has complied with the applicable code provisions of the corporate governance code for the year ending December 31, 2024[54]. - The company emphasizes the importance of good corporate governance elements in its management structure, internal controls, and risk management procedures[51]. - The company has independent non-executive directors overseeing the board and providing independent opinions and judgments[47]. - The board consists of seven members, including two executive directors, two non-executive directors, and three independent non-executive directors[57]. Risk Management - The company has a risk management and internal control system that includes a clearly defined organizational structure with specified authority and responsibility[101]. - The company has committed to reviewing its risk management and internal control systems annually to ensure their effectiveness[103]. - The board is responsible for evaluating and determining the nature and extent of risks acceptable to the company in achieving its strategic objectives, ensuring the establishment and maintenance of effective risk management and internal control systems[100]. Employee and Shareholder Engagement - The company has a strong team of independent non-executive directors with extensive experience in finance and corporate governance[48]. - The total number of employees as of December 31, 2024, is 670, with a gender ratio of approximately 1:2 (193 male employees and 477 female employees)[68]. - The company emphasizes the importance of a diverse workforce, considering it a key element for maintaining long-term competitive advantage[68]. - The company encourages shareholders to submit inquiries and suggestions via email to enhance engagement and feedback[117]. Stock Options and Incentives - The company has a stock option plan approved on November 19, 2018, aimed at incentivizing eligible participants for their contributions to the group[159]. - The total number of shares available for issuance under the stock option plan is capped at 222,100,000 shares, which is 10% of the total shares issued as of the listing date and the report date[162]. - The stock options granted but not yet exercised are subject to the total issuance cap of 222,100,000 shares[162]. - The stock reward plan was adopted by the board on March 28, 2022, to recognize employee contributions and attract suitable personnel for further development[175][176]. Environmental and Social Responsibility - The company aims to create sustainable value by integrating economic growth, environmental protection, and social responsibility into its business strategy[119]. - The company has a dedicated team to handle environmental compliance and implements strict waste management procedures at its manufacturing bases[136].
五谷磨房(01837) - 2024 - 年度财报