Development Strategy - In 2023, the company proposed a five-year development strategy focused on the beauty and wellness industry, leveraging the rising living standards and health awareness among Chinese consumers[13]. - The company plans to drive steady progress with clear strategic objectives and rigorous scientific strategies[13]. - The company is committed to long-term sustainability and enhancing its omni-channel sales network[105]. Brand and Marketing - The company aims to enhance its brand image through technology, product, and service innovations, establishing a comprehensive marketing communications matrix[14]. - The brand aims to increase consumer awareness and exposure through social media interactions and collaborations with key opinion leaders[14]. - The company is dedicated to promoting high-quality development of its brand within the global bird's nest industry[14]. - The company adopted a multi-brand strategy, promoting both master and sub-brands to create more value for customers[54]. - The company implemented diversified marketing strategies, including celebrity endorsements and live streaming, to reach a broader consumer base[63]. - The company utilized cultural initiatives, such as partnering with a Peking Opera actor, to promote traditional culture and enhance brand image[56]. Financial Performance - The company recorded a revenue of RMB 1,964.2 million for the year ended December 31, 2023, representing a year-on-year increase of 13.5% from 2022[23]. - The net profit for 2023 was RMB 211.6 million, with an adjusted net profit of RMB 244.4 million, reflecting a year-on-year increase of 15.8% from 2022[23]. - Revenue increased by 13.5% from RMB 1,729.9 million in 2022 to RMB 1,964.2 million in 2023[34]. - Gross profit rose by 13.3% from RMB 878.3 million in 2022 to RMB 994.9 million in 2023[34]. - Net profit grew by 2.8% from RMB 205.9 million in 2022 to RMB 211.6 million in 2023[34]. - Adjusted net profit increased by 15.8% from RMB 211.1 million in 2022 to RMB 244.4 million in 2023[34]. Product Development - The company launched a series of EBN porridge products to enter the breakfast market, broadening EBN consumption scenarios[19]. - The company has developed EBN peptides skincare products, extending the value chain of the EBN industry[19]. - The company launched the EBN porridge series under the sub-brand Xiao Yan Nong, entering the breakfast market and quickly gaining market presence[54]. - The company launched a series of EBN skincare products under the Yan Palace brand, focusing on "repair and anti-aging" to meet consumer needs[54]. - The company introduced new product lines, including the Silk Road Yan Dance Dragon Tongue Dried EBN and pure EBN for instant stewing, catering to consumer convenience needs[82]. Sales and Distribution - The company has established a diverse sales network with 96 self-managed stores and 647 distributor-operated stores, alongside 27 self-operated online stores and 18 distributor-operated online stores[20]. - In 2023, the company's e-commerce revenue reached RMB 1,104.0 million, accounting for 56.2% of total revenue, representing a 17.7% increase from 2022[58]. - The company expanded its online sales network to 27 self-operated and 18 distributor-operated online stores by the end of 2023[58]. - The total revenue from the offline business was RMB 860.2 million, accounting for 43.8% of the Group's total revenue, representing an increase of 8.6% compared to 2022[67][69]. Market Trends - China's EBN market is expected to grow from RMB 43.0 billion in 2022 to RMB 92.1 billion in 2027, at a CAGR of 16.5%[46]. - The beauty and wellness product market in China is projected to reach RMB 1,173.9 billion by 2027, growing at a CAGR of 6.3% from 2022[42]. - Total retail sales of consumer goods in China reached RMB 4,714.95 billion, representing a 7.2% increase from 2022[41]. Awards and Recognition - The company ranked first in the China Brand Power Index (C-BPI) EBN brand ranking for four consecutive years[49]. - The company received three major awards in 2023, including the Tmall Health Annual Industry Benchmark Brand and the Annual Live Streaming Achievement Award[63]. Sustainability and Environmental Initiatives - The company implemented an Empty Bottle Environmental Protection Program to promote sustainability and environmental responsibility[80]. - The company launched the New Generation Freshly Stewed Bird's Nest in October 2023, contributing to the "dual carbon" goals by reducing approximately 2,576.90 tons of carbon dioxide equivalent[80]. - In 2023, the company reduced carbon emissions by approximately 2,576.90 tons of CO2 equivalent, contributing to national "dual carbon" goals[83]. Employee and Governance - Employee costs for the year ended December 31, 2023, amounted to approximately RMB 293.5 million, with a total of 1,917 employees as of the same date[100]. - The board of directors consists of nine members, including four executive directors, two non-executive directors, and three independent non-executive directors, ensuring diverse governance[182]. - The company has a strong management team with extensive experience in the pharmaceutical and media industries, enhancing its strategic decision-making capabilities[197][199]. Future Outlook - The company recognizes potential challenges in economic recovery and changing consumer behavior post-epidemic[105]. - Future strategies may include market expansion and potential mergers and acquisitions to enhance growth opportunities[197].
燕之屋(01497) - 2023 - 年度财报