Business Development and Strategy - The company reported a steady development in the frozen food sector, adhering to a "product-driven" growth strategy and focusing on three main product lines: frozen prepared foods, frozen dishes, and frozen noodles[9]. - The company has implemented a new product development strategy that emphasizes "research and development for one generation, production for one generation, and reserve for one generation," leading to the launch of various new products, including a series of gourmet sausages[10]. - In July, the company completed the acquisition of 70% of Jiangsu Dingwei Thai Food Co., Ltd. and 100% of Dingyifeng Food (Taicang) Co., Ltd., expanding its presence in the frozen baking sector[14]. - The company aims to optimize its global market layout and enhance its international strategy following its listing on the Hong Kong Stock Exchange on July 4, 2025, becoming the first "A+H" listed frozen food company in China[15]. - The company is actively pursuing overseas market expansion, targeting Southeast Asia, Europe, and North America for production capacity and sales channel development[15]. Product and Market Performance - The company reported a strong market response to its upgraded product lines, which include various flavors of sausages and other innovative offerings[10]. - The revenue from frozen prepared foods for the six months ended June 30, 2024, was RMB 3,739,011 thousand, accounting for 49.4% of total revenue, a decrease of 1.8% compared to the same period last year[28]. - The revenue from frozen dishes for the same period was RMB 2,409,812 thousand, representing a 9.5% increase year-on-year and accounting for 31.9% of total revenue[30]. - The revenue from frozen staple foods was RMB 1,234,815 thousand, accounting for 16.3% of total revenue, showing a slight decrease from the previous year[26]. - The company offers over 500 products, with 39 products generating over RMB 100 million in annual revenue, and 4 products exceeding RMB 500 million in 2024[23]. Financial Performance - The company's revenue for the reporting period was RMB 7,564.6 million, a 1.2% increase from RMB 7,478.0 million in the same period last year[72]. - The net profit for the period was RMB 675.1 million, a decrease of 17.3% from RMB 816.1 million in the same period last year[85]. - The gross profit decreased by 13.9% to RMB 1,504.5 million, with a gross profit margin of 19.9%, down 3.5 percentage points from the previous year[75]. - The sales cost increased by 5.8% to RMB 6,060.1 million, primarily due to rising procurement prices for raw materials such as crayfish and fish paste[73]. Supply Chain and Operational Efficiency - The company has adopted AI technology to enhance operational efficiency across various business segments, including procurement, production, sales, and HR[14]. - The company continues to enhance its management structure and supply chain efficiency through refined organizational adjustments and management practices[14]. - The company has established a qualified supplier directory, which is updated regularly, and suppliers scoring below 60 are not included in the qualified supplier list[36]. - The company has implemented a strict supplier admission management process, including qualification review and on-site evaluation, to ensure the quality of raw material procurement[35]. Marketing and Sales Strategy - The company is focusing on channel expansion into lower-tier markets and embracing new retail customers, collaborating with major retailers like Walmart and Metro for customized product development[11]. - The company has enhanced its online sales capabilities by partnering with third-party platforms like Meituan and JD for live-streaming sales activities[41]. - The company's marketing strategy emphasizes healthy eating, with unified promotional activities to enhance brand awareness across various retail channels[41]. - The company is actively expanding partnerships with new retail platforms, leveraging big data for product and service integration[46]. Employee and Governance - The total number of employees in the group as of June 30, 2025, is 17,778, with total employee costs amounting to RMB 726.5 million during the reporting period[111]. - The group emphasizes competitive compensation packages, including salaries, allowances, and performance-based bonuses, supported by a self-developed performance evaluation system[112]. - The company is committed to high levels of corporate governance to protect shareholder interests[154]. - The company has adopted the corporate governance code as a baseline for its governance practices since its listing[154]. Dividend and Shareholder Information - The company plans to distribute a cash dividend of RMB 1.425 per share (including tax), totaling approximately RMB 473,282,445.60, which represents 70.02% of the net profit attributable to shareholders for the first half of 2025[155]. - The total number of shares eligible for the dividend distribution is 332,128,032 after deducting 1,160,900 shares held in the repurchase account from the total share capital of 333,288,932[155]. - The company will distribute the interim dividend to H-share shareholders on October 17, 2025, based on the shareholder register as of September 15, 2025[158]. Risks and Challenges - The company faces risks including food safety, rising costs of raw materials, and potential impacts from natural disasters or public health events[116]. - The company will continue to monitor foreign exchange rate fluctuations closely, as it holds several foreign currency cash reserves, exposing it to currency risk[116].
安井食品(02648) - 2025 - 中期财报