亲亲食品(01583) - 2023 - 中期业绩

Financial Highlights The Group reported a 7.0% revenue increase and a 4.7-fold surge in profit attributable to shareholders for H1 2023, alongside improved gross margin and EBITDA Key Financial Performance and Ratios (For the six months ended June 30) | Financial Metric | H1 2023 (Unaudited) | H1 2022 (Unaudited) | Change | | :--- | :--- | :--- | :--- | | Revenue | RMB 568.8 million | RMB 531.5 million | +7.0% | | Gross Profit | RMB 166.1 million | RMB 143.6 million | +15.6% | | Gross Margin | 29.2% | 27.0% | +2.2pp | | EBITDA | RMB 76.9 million | RMB 58.4 million | +31.7% | | Profit Attributable to Shareholders | RMB 26.2 million | RMB 4.6 million | +4.7-fold | | Basic EPS | RMB 0.035 | RMB 0.006 | - | Key Financial Position (As of period end) | Financial Metric | June 30, 2023 (Unaudited) | Dec 31, 2022 (Audited) | Change | | :--- | :--- | :--- | :--- | | Total Assets | RMB 1,945.4 million | RMB 2,056.7 million | -5.4% | | Net Cash Position | RMB 109.9 million | RMB 274.1 million | -59.9% | | Net Current Assets | RMB 172.1 million | RMB 91.2 million | +88.7% | | Total Equity Attributable to Shareholders | RMB 1,260.1 million | RMB 1,234.1 million | +2.1% | Interim Condensed Consolidated Financial Information This section presents the Group's interim financial statements, including the income statement, balance sheet, cash flow statement, segment information, and dividend policy Interim Condensed Consolidated Income Statement For the six months ended June 30, 2023, the Group's revenue increased by 7.0% year-over-year to RMB 568.8 million, with profit attributable to shareholders surging 4.7-fold to RMB 26.2 million, yielding a basic EPS of RMB 0.035 Income Statement Summary (For the six months ended June 30) | Item | 2023 (RMB '000) | 2022 (RMB '000) | Change | | :--- | :--- | :--- | :--- | | Revenue | 568,823 | 531,529 | +7.0% | | Gross Profit | 166,088 | 143,635 | +15.6% | | Operating Profit | 34,837 | 13,088 | +166.2% | | Profit for the period | 26,105 | 4,487 | +481.8% | | Profit attributable to Company's shareholders | 26,159 | 4,626 | +465.5% | | Basic EPS (RMB) | 0.035 | 0.006 | +483.3% | Interim Condensed Consolidated Balance Sheet As of June 30, 2023, total assets were RMB 1,945.4 million, a 5.4% decrease from year-end 2022, while total equity increased 2.1% to RMB 1,260.1 million, with net current assets growing 88.7% to RMB 172.1 million and net cash position decreasing 59.9% to RMB 109.9 million Balance Sheet Summary | Item | June 30, 2023 (RMB '000) | Dec 31, 2022 (RMB '000) | Change | | :--- | :--- | :--- | :--- | | Total Non-current Assets | 1,377,439 | 1,338,633 | +2.9% | | Total Current Assets | 567,911 | 718,100 | -20.9% | | Total Assets | 1,945,350 | 2,056,733 | -5.4% | | Total Current Liabilities | 395,769 | 626,860 | -36.9% | | Total Non-current Liabilities | 289,514 | 195,175 | +48.3% | | Total Liabilities | 685,283 | 822,035 | -16.6% | | Total Equity | 1,260,067 | 1,234,698 | +2.1% | Interim Condensed Consolidated Cash Flow Statement For H1 2023, net cash used in operating activities was RMB 68.4 million, a reversal from RMB 120.0 million generated in H1 2022, with net cash used in investing activities decreasing to RMB 110.8 million and net cash from financing activities at RMB 74.0 million Cash Flow Summary (For the six months ended June 30) | Item | 2023 (RMB '000) | 2022 (RMB '000) | | :--- | :--- | :--- | | Net cash (used in)/generated from operating activities | (68,351) | 119,961 | | Net cash used in investing activities | (110,785) | (152,781) | | Net cash generated from/(used in) financing activities | 74,001 | (47,564) | | Net decrease in cash and cash equivalents | (105,135) | (80,384) | | Cash and cash equivalents at beginning of period | 442,641 | 391,190 | | Cash and cash equivalents at end of period | 339,342 | 311,001 | Segment Information The Group operates in four segments: Jelly products, Puffed foods, Seasoning products, and Candy and other products, with Jelly products contributing the most revenue at RMB 381.9 million in H1 2023, and all segments achieving revenue growth Segment Revenue and Results (H1 2023) | Segment | Revenue (RMB '000) | Segment Results (Gross Profit) (RMB '000) | | :--- | :--- | :--- | | Jelly products | 381,904 | 116,127 | | Puffed foods | 126,109 | 33,820 | | Seasoning products | 41,454 | 13,490 | | Candy and other products | 19,356 | 2,651 | | Total | 568,823 | 166,088 | - Over 90% of the Group's revenue, operating profit, and non-current assets are derived from or located in Mainland China, hence no geographical segment information is presented[93] Dividends The Board of Directors resolved not to declare an interim dividend for the six months ended June 30, 2023, consistent with the prior year - The Board resolved not to distribute an interim dividend for the six months ended June 30, 2023[71][122] Management Discussion and Analysis This section provides an in-depth review of the Group's business performance, segment analysis, expense trends, liquidity, and future strategic direction Business Review In H1 2023, the Group's sales revenue increased 7.0% to RMB 568.8 million, with gross profit rising 15.7% to RMB 166.1 million and gross margin improving 2.2 percentage points to 29.2%, driven by channel expansion, price increases, and lower raw material costs - Revenue growth was driven by continuous expansion of sales channels and price increases compared to the same period last year[201] - The increase in gross profit and margin was due to higher sales volume, price hikes, and a slight decrease in raw material costs[177][202] - Net profit attributable to shareholders surged by 4.7-fold to RMB 26.2 million, also benefiting from a reduction in losses from fair value changes of financial assets[177][234] Segment Performance Analysis All major product segments achieved revenue growth in H1 2023, with Jelly products growing 7.2%, Puffed foods 4.1%, Seasoning products 8.6%, and Candy and other products 21.3%, alongside improved gross margins for most segments Jelly Products Jelly products revenue grew by 7.2% to RMB 381.9 million, with gross margin improving to 30.4%, driven by channel expansion and price increases Jelly Products Performance (H1) | Metric | 2023 | 2022 | Change | | :--- | :--- | :--- | :--- | | Revenue | RMB 381.9M | RMB 356.3M | +7.2% | | Gross Profit | RMB 116.1M | RMB 106.2M | +9.3% | | Gross Margin | 30.4% | 29.8% | +0.6pp | - Growth was driven by channel expansion, especially in new snack chain stores, and price increases implemented in H2 2022[204] Puffed Foods Puffed foods revenue increased by 4.1% to RMB 126.1 million, with gross margin improving to 26.8%, supported by regional expansion and product mix optimization Puffed Foods Performance (H1) | Metric | 2023 | 2022 | Change | | :--- | :--- | :--- | :--- | | Revenue | RMB 126.1M | RMB 121.1M | +4.1% | | Gross Profit | RMB 33.8M | RMB 29.8M | +13.4% | | Gross Margin | 26.8% | 24.6% | +2.2pp | - Stable growth was maintained by expanding into weaker sales regions (Southern, Southwestern, and Northwestern China) and optimizing the product mix with new products like "Potato Chips" and "Qinqin Rings"[181] Seasoning Products Seasoning products revenue grew by 8.6% to RMB 41.5 million, with gross margin significantly improving to 32.5% due to increased sales volume and lower raw material costs Seasoning Products Performance (H1) | Metric | 2023 | 2022 | Change | | :--- | :--- | :--- | :--- | | Revenue | RMB 41.5M | RMB 38.2M | +8.6% | | Gross Profit | RMB 13.5M | RMB 9.9M | +36.4% | | Gross Margin | 32.5% | 25.8% | +6.7pp | - The business recovered its growth momentum post-pandemic, with increased sales volume and lower raw material costs contributing to higher sales, gross profit, and margin compared to the prior year[237] Candy and Other Products Candy and other products revenue increased by 21.3% to RMB 19.4 million, primarily driven by increased sales of new rice wine products following the establishment of a new production base - Revenue increased by 21.3% to RMB 19.4 million, primarily driven by increased sales of new rice wine products following the establishment of a new production base[207][208] Expense Analysis Distribution and selling expenses decreased 8.8% to RMB 64.2 million due to strategic shifts and lower delivery costs, while administrative expenses rose 16.3% to RMB 68.5 million, primarily from increased depreciation and taxes related to new production bases - Distribution and selling expenses decreased by 8.8% to RMB 64.2 million, attributed to a strategic shift away from low-margin products on e-commerce channels and lower delivery costs compared to the pandemic-affected period in the prior year[208][239] - Administrative expenses increased by 16.3% to RMB 68.5 million, mainly caused by an RMB 8.3 million increase in depreciation of property, plant, and equipment, as well as property and land use taxes after new production bases became fully operational[240] Liquidity and Capital Resources The Group maintained a sound financial position with RMB 411.9 million in cash and bank balances and RMB 302.0 million in bank loans as of June 30, 2023, improving its liquidity ratio to 1.4x from 1.0x at year-end 2022, with capital expenditure of RMB 85.7 million Liquidity and Capital Position | Metric | June 30, 2023 | Dec 31, 2022 | | :--- | :--- | :--- | | Cash and bank balances | RMB 411.9M | RMB 502.1M | | Bank loans | RMB 302.0M | RMB 228.0M | | Net current assets | RMB 172.1M | RMB 91.2M | | Liquidity ratio | 1.4x | 1.0x | - Capital expenditure in H1 2023 amounted to RMB 85.7 million, mainly used for the construction of new production bases and the purchase of new production equipment in China[227] - As of June 30, 2023, the Group had capital commitments of approximately RMB 158.8 million, a decrease from RMB 240.9 million at the end of 2022[65][190] Future Outlook and Strategy The Group plans to drive future growth through continuous product innovation, expanded sales channels including e-commerce and new retail, enhanced production efficiency via base completion, and strategic investments in synergistic consumer goods companies - Product Innovation: Persist with a multi-category strategy, focusing on product quality, optimizing the product mix, and strengthening the market position of key products[277] - Channel Expansion: Consolidate existing distribution networks while developing new market channels such as e-commerce (with higher-margin products), snack brand stores, and food service channels to increase penetration[254] - Production Enhancement: Complete the construction and renovation of production bases and upgrade equipment to improve processes, product quality, and production efficiency[224] - Strategic Investment: Seek opportunities to invest in high-potential consumer goods companies that have synergies with the Group's business[255]