SIRIO(300791)2024-05-15 10:31Financial Performance - Company's net profit margin in 2023 was 8.3% [3] - Anhui Xianle subsidiary achieved a net profit of 224 million yuan with a net profit margin of 22.7% [3] - Shantou headquarters is expected to have a similarly high net profit margin [3] - US BF company reported 4.1 billion yuan revenue and 28.2 million yuan net profit in 2022, with a 6.9% net profit margin [3] - US BF company incurred a loss of 143 million yuan in 2023, negatively impacting overall net profit by 102 million yuan [3] Operational Challenges - US BF company's 2023 losses attributed to inventory surplus, delayed orders, and postponed production line launch [3][4] - Company's operating cash flow decreased in 2023 due to BF transaction-related payments [3] - Q1 2024 operating cash flow turned negative due to increased procurement expenses [3] Market Position and Strategy - Top 5 CDMO companies in China hold less than 20% market share [4] - Industry expected to consolidate with larger brands demanding higher qualifications from manufacturers [4] - Company aims to enhance market position through R&D innovation, business expansion, and cost efficiency [3][4] - Company's vision is to become a global leader in nutrition and health innovation [5] Subsidiary Performance - German subsidiary (indirectly controlled) achieved 8.3% net profit margin in 2023 [3] - US BF company's performance expected to improve with inventory reduction and operational enhancements [4] Future Outlook - Company targets improved net profit margin through operational optimization and market expansion [3][4] - US BF company expected to reach German subsidiary's performance level, potentially raising overall net profit margin to around 13% [4] - Company plans to strengthen its position as a leading global CDMO enterprise in nutrition and health [5]