老恒和酿造(02226) - 2025 - 中期财报

Company Information Board of Directors and Corporate Governance Committee The company's board members changed during the reporting period, with Executive Director Mr. Chen Wei resigning and Mr. Huang Dachun and Mr. Zhu Bing being appointed, while audit, remuneration, and nomination committees ensure effective corporate governance - Executive Director changes: Mr. Huang Dachun and Mr. Zhu Bing were appointed Executive Directors on June 3, 2025, while Mr. Chen Wei resigned on the same day[6][7] - The company has an Audit Committee (Chairman: Mr. Wu Ronghui), Remuneration Committee (Chairman: Mr. Shen Zhenchang), and Nomination Committee (Chairman: Mr. Sun Jiong) to oversee operations and governance[6][7][8] Company Basic Information The company is registered in the Cayman Islands, with its China headquarters in Huzhou, Zhejiang, and Hong Kong operations in Kowloon, listed under stock code 2226, with key banking and legal advisor information provided - Registered office is in the Cayman Islands, China headquarters and principal place of business in Huzhou, Zhejiang, and Hong Kong principal place of business in Kowloon[10][11] - Company stock code is 2226, website is http://www.hzlaohenghe.com[13](index=13&type=chunk) Management Discussion and Analysis Business Review As a leading Chinese condiment producer, the company achieved organic and FSSC22000 certifications and participated in industry standard revisions in H1 2025, enhancing competitiveness through quality, innovation, and channel reform despite slower consumer recovery and intensified competition - Lao Heng He yellow wine, soy sauce, fermented bean curd, rose rice vinegar, and other products successfully obtained organic product certification[18] - Subsidiary Huzhou Lao Heng He Winery Co., Ltd. obtained FSSC22000 system certification and was recognized as a 'Tax Outstanding Contribution Enterprise' for 2024[18] - The company actively participated in revising the Zhejiang Manufacturing Standard for 'Shaoxing Fermented Bean Curd' and the Group Standard for 'Rose Rice Vinegar'[18] - Market challenges in H1 2025: consumer recovery fell short of expectations, catering procurement contracted, and intensified homogenization in the condiment industry led to pressure on terminal prices and narrowed industry gross margins[19] Market Strategy and Promotion In H1 2025, the company strengthened premium product packaging, promotional planning, and online/offline channel deployment, implementing multi-level strategies to build core markets and model stores, deepen supermarket and online channels, and enhance customer loyalty with a 'heritage brand, flagship product, premium, and high-value' strategy - Strengthened premium product packaging, promotional activity planning, online media platform layout, and offline key channel promotion[20][22] - Implemented multi-level, multi-channel strategies, building core markets and model stores, deepening supermarket and online channels, concentrating resources on promoting flagship products, and enhancing customer loyalty[20][22] - Adopted a strategy of 'heritage brand, flagship product, premium, and high-value national Chinese time-honored products', leveraging brand history and quality assurance to dominate the diversified condiment product market[20][22] Product Research and Development and Quality The company continuously invests in product R&D and quality control, forming research teams, collaborating with universities on brewing theory, developing new products, and improving production line processes, while enhancing food safety and product quality through equipment acquisition, employee training, and a digital traceability system - Formed an external technical expert R&D team, established a comprehensive product R&D system and process, and collaborated with universities on brewing theory research[21][23] - Successfully developed new products and improved the production process for new soy sauce and soybean paste production lines, which were successfully put into operation[21][23] - Strengthened food safety technical assurance capabilities by acquiring testing instruments, enhancing employee training, establishing a full-process digital food safety traceability system, and developing emergency plans[21][23] Production Plant Management In H1 2025, the company upgraded existing equipment, refined processes, established standardized systems, and acquired new machinery to improve labor efficiency and reduce production costs, thereby enhancing product market competitiveness - Upgraded and renovated existing equipment, refined and innovated processes, established standardized systems, and optimized operational procedures[24][27] - Acquired some equipment to improve workshop labor efficiency, reduce production costs, and enhance core product competitiveness[24][27] Financial Review In H1 2025, the company's revenue remained flat year-on-year, but gross profit and margin declined due to product mix adjustments and increased promotions, leading to a 1.6% increase in loss attributable to ordinary equity holders and a higher net loss margin, facing risks from rising production costs, intensified competition, and new product market acceptance H1 2025 Key Financial Indicators (RMB thousand) | Indicator | H1 2025 | H1 2024 | Period-on-period change (%) | | :--- | :--- | :--- | :--- | | Revenue | 144,422 | 144,277 | 0.1 | | Gross Profit | 42,055 | 47,108 | (10.7) | | Loss Attributable to Ordinary Equity Holders of the Company | (251,677) | (247,604) | 1.6 | | Loss Before Interest, Tax, Depreciation and Amortisation (LBITDA) | (138,156) | (132,196) | 4.5 | | Loss Per Share (RMB) | (0.43) | (0.43) | 0 | | Gross Margin (%) | 29.1 | 32.7 | (11.0) | | Net Loss Margin Attributable to Ordinary Equity Holders of the Company (%) | (174.3) | (171.6) | 1.6 | | LBITDA Loss Margin (%) | (95.7) | (91.6) | 4.5 | | Capital Gearing Ratio (%) (2025/06/30 vs 2024/12/31) | 427.8 | 393.5 | 8.7 | - Profitability is influenced by product pricing, cost of sales, marketing strategies, product structure and mix, and company reform factors[30][32] - Risks include: significant increases in production costs (agricultural products, packaging, labor), changing consumer habits and multi-channel competition, higher-than-expected market expansion and selling expenses, low market acceptance for new products, difficulties faced by distributors leading to complex sales policies and credit management, and uncertainties from the new economic landscape[30][32] Revenue In H1 2025, total revenue was approximately RMB 144.4 million, flat year-on-year, with cooking wine revenue growing 4.0% to RMB 95.9 million (66.4% of total), while soy sauce, rice vinegar, and other products revenue decreased 6.9% to RMB 48.5 million H1 2025 Revenue Composition (RMB million) | Product Category | H1 2025 | H1 2024 | Period-on-period change (%) | | :--- | :--- | :--- | :--- | | Total Revenue | 144.4 | 144.3 | 0.1 | | Cooking Wine Products Revenue | 95.9 | 92.2 | 4.0 | | Soy Sauce, Rice Vinegar and Other Products Revenue | 48.5 | 52.1 | (6.9) | - Cooking wine product revenue growth was primarily driven by new product launches, optimization of existing product structure, and increased promotional efforts[46][54] - The decline in soy sauce, rice vinegar, and other product revenue was due to product portfolio adjustments, reducing the production of underperforming products[47][50] Cost of Sales Cost of sales increased by 5.3% to RMB 102.4 million in H1 2025, primarily due to a higher proportion of lower-margin mid-range products sold Cost of Sales (RMB million) | Indicator | H1 2025 | H1 2024 | Period-on-period change (%) | | :--- | :--- | :--- | :--- | | Cost of Sales | 102.4 | 97.2 | 5.3 | - The increase in cost of sales was mainly attributable to a higher proportion of lower-margin mid-range products in revenue[48][51] [Gross