QIANHE(SH:603027) He Xun Wang·2025-04-16 11:28Core Viewpoint - Qianhe Flavor Industry reported its first negative growth in performance since its listing in 2016, with revenue and net profit both declining in the last fiscal year [2][3]. Financial Performance - In 2024, Qianhe achieved revenue of 3.073 billion yuan, a decrease of 4.16% year-on-year, and a net profit attributable to shareholders of 514 million yuan, down 3.07% [3]. - The core products, soy sauce and vinegar, saw revenue drop to 1.964 billion yuan and 370 million yuan, representing declines of 3.75% and 12.52% respectively, although gross margins slightly improved [3]. - Despite the revenue decline, soy sauce sales volume increased by 1.27%, indicating a drop in price per ton [3]. Dividend Policy - Qianhe announced a significant dividend payout of 99.94% of its net profit, distributing 514 million yuan, which is nearly equivalent to its net profit for the year [6][7]. Market and Competitive Landscape - The company faces intensified competition as major players like Haitian Flavor Industry and Lee Kum Kee are launching "zero-additive" products, undermining Qianhe's competitive edge [3][10]. - The southern region showed the best performance for Qianhe, with revenue growth of 13.99% to 237 million yuan, while other regions experienced declines [3]. Regulatory Changes - New national standards prohibit the use of terms like "zero additives" on packaging, which poses a challenge for Qianhe, as its branding heavily relies on this concept [9][10]. - The transition period for compliance with the new regulations is two years, during which Qianhe must remove "zero additive" labels from its products, potentially incurring significant rebranding costs [10][11]. Cost Management - Qianhe managed to reduce its operating costs to 1.930 billion yuan, a decrease of 4.22% year-on-year, indicating effective cost control [5]. - The direct material costs for soy sauce and vinegar decreased by 6.25% and 16.14% respectively, benefiting from lower soybean prices [6].