Core Viewpoint - Yihai International reported stable revenue and slight profit growth in the first half of 2025, indicating resilience in its third-party business despite a decline in related party income [1][4]. Group 1: Financial Performance - The company achieved revenue of 2.927 billion yuan, remaining flat year-on-year, with a net profit of 310 million yuan, reflecting a year-on-year increase of 0.4% [1]. - The net profit margin was 10.6%, down 0.6 percentage points year-on-year, while operating profit increased by 4.0% to 430 million yuan [1]. - Earnings per share were 0.3190 yuan, also up 0.4% year-on-year, with an interim dividend of 0.3107 HKD per share, translating to approximately 0.2836 yuan [1]. Group 2: Revenue Structure and Growth Drivers - The revenue structure showed significant changes, with third-party income reaching 2.064 billion yuan, accounting for 70.5% of total revenue and growing by 6.5% year-on-year [1]. - Revenue from B-end catering clients surged by 131.7% to 155 million yuan, driven by customized products and new client acquisition [1]. - Distributor channel revenue was 1.727 billion yuan, up 2.1% year-on-year, benefiting from refined end management and new product penetration [1]. - Related party revenue decreased by 12.7% to 864 million yuan, primarily due to reduced demand for hot pot base materials from partners like Haidilao and product pricing adjustments [1]. Group 3: Cost Management and Margins - The gross margin for the first half of 2025 was 29.5%, down 0.5 percentage points year-on-year, mainly due to a decline in related party gross margins and an increase in low-margin B-end products [2]. - The expense ratio was optimized, with distribution expenses rising to 12.6% due to increased logistics costs, while advertising and marketing expenses decreased by 35.4% [2]. - Administrative expenses increased to 5.3%, reflecting a 0.5 percentage point rise year-on-year, indicating effective cost control despite rising talent and rental costs [2]. Group 4: Strategic Initiatives and Future Outlook - The company is enhancing its supply chain by increasing semi-finished product reserves, resulting in inventory turnover days rising to 37 days from 34 days at the end of 2024 [3]. - Customized services for B-end clients are being prioritized, with a dedicated team providing flavor transformation solutions, contributing to significant revenue growth [3]. - The company is expanding its overseas presence, with production capacity ramping up in Thailand and accelerating direct terminal construction across 49 countries and regions [3]. - The B-end and overseas markets are expected to become new growth engines for the company [3].
颐海国际(01579.HK)2025年中报点评：第三方业务韧性凸显 B端和海外驱动增长