Xiwang Foodstuffs(000639) Shen Zhen Shang Bao·2025-04-02 13:37Core Viewpoint - Xiwang Food reported a significant decline in revenue and an increase in net loss for the fiscal year 2024, marking the third consecutive year of losses for the company [1][2]. Group 1: Financial Performance - The company achieved a revenue of 4.972 billion yuan in 2024, a year-on-year decrease of 9.43% [1]. - The net loss attributable to shareholders expanded to 444 million yuan, a staggering increase of 2530% compared to a loss of 16.87 million yuan in the previous year [1]. - Over the past three years, Xiwang Food has accumulated losses exceeding 1 billion yuan [1]. Group 2: Business Segments - The edible oil segment generated revenue of 2.253 billion yuan, down 5.55% year-on-year, continuing a downward trend from 3.155 billion yuan in 2021 to 2.385 billion yuan in 2023 [1]. - The nutrition supplement business, which became a significant revenue source after the acquisition of Aowei Te in 2016, saw a revenue decline of 9.98% to 2.248 billion yuan in 2024, failing to recover from its peak of 2.964 billion yuan in 2018 [2]. Group 3: Impairment and Costs - The company recorded an asset impairment provision of 868 million yuan for 2024, including 715 million yuan for intangible assets and 148 million yuan for goodwill [2]. - This impairment will reduce the net profit attributable to the parent company by 522 million yuan for the fiscal year [2]. Group 4: Market Challenges - Xiwang Food attributed the revenue decline to intensified market competition and changes in the overall market environment, particularly in the edible oil sector [2]. - Despite growing demand for health-oriented and functional products, the company faces fierce competition and the need for continuous product innovation to maintain market share [2]. Group 5: R&D and Strategic Initiatives - The company's R&D expenditure for 2024 was only 37.61 million yuan, halved from 75.42 million yuan in 2023, attributed to changes in technical research methods [3]. - To address challenges, Xiwang Food is leveraging its parent company, Xiwang Group, to establish a complete industrial chain and expand its marketing network through a combination of modern and traditional channels [3]. - The company is also focusing on enhancing brand visibility through celebrity endorsements and social media, as well as targeting international markets like China, India, and Australia for growth [3]. Group 6: Market Position - As of April 2, the stock price of Xiwang Food was 2.76 yuan per share, with a total market capitalization of 2.979 billion yuan [4].