克明食品(002661) - 2024 Q2 - 季度财报

Financial Performance - Revenue for the reporting period was 2.397 billion yuan, a decrease of 10.46% compared to the same period last year[14] - Net profit attributable to shareholders of the listed company was 102.73 million yuan, an increase of 824.52% year-on-year[14] - Net profit attributable to shareholders of the listed company after deducting non-recurring gains and losses was 96.83 million yuan, an increase of 2,059.58% year-on-year[14] - Basic earnings per share were 0.315 yuan, an increase of 826.47% year-on-year[14] - The company achieved operating revenue of 2.398 billion yuan, a year-on-year decrease of 10.46%, while operating profit increased by 903.17% to 131 million yuan, and net profit attributable to shareholders surged by 824.52% to 103 million yuan[32] - Total operating revenue for the first half of 2024 was 2,397,883,482.85 yuan, a decrease of 10.46% compared to 2,678,048,039.23 yuan in the same period last year[156] - Net profit attributable to the parent company's shareholders was 102,726,520.21 yuan, a significant increase from 11,111,357.14 yuan in the first half of 2023[157] - Operating profit for the first half of 2024 was 131,148,824.37 yuan, compared to a loss of 16,328,798.95 yuan in the same period last year[156] - Total comprehensive income attributable to the parent company's shareholders was 102,862,304.26 yuan, compared to 13,173,336.28 yuan in the first half of 2023[157] Cash Flow and Liquidity - Net cash flow from operating activities was 91.44 million yuan, a decrease of 72.81% compared to the same period last year[14] - Net cash flow from financing activities increased by 350.03% year-on-year to RMB 288,308,308.05[57] - Net cash flow from operating activities for the first half of 2024 was 91,438,953.11 yuan, a significant drop from 336,248,112.08 yuan in the same period of 2023[161] - Net cash flow from investing activities for the first half of 2024 was -161,806,326.64 yuan, an improvement from -269,916,072.51 yuan in the same period of 2023[162] - Net cash flow from financing activities for the first half of 2024 was 288,308,308.05 yuan, a positive shift from -115,307,286.36 yuan in the same period of 2023[162] - Total cash and cash equivalents at the end of the first half of 2024 were 528,738,531.80 yuan, a significant increase from 204,005,510.29 yuan at the end of the same period in 2023[162] - Cash received from investments in the first half of 2024 was 583,054,951.69 yuan, a substantial increase from 64,687,949.83 yuan in the same period of 2023[162] - Cash received from borrowing in the first half of 2024 was 1,300,060,827.22 yuan, a decrease from 1,428,640,543.69 yuan in the same period of 2023[162] - Cash paid for the purchase of goods and services in the first half of 2024 was 2,082,322,301.31 yuan, an increase from 1,946,256,231.91 yuan in the same period of 2023[161] - Cash paid to employees in the first half of 2024 was 222,588,624.34 yuan, a decrease from 251,167,013.52 yuan in the same period of 2023[161] - Cash received from tax refunds in the first half of 2024 was 9,174,202.70 yuan, a significant increase from 2,863,119.63 yuan in the same period of 2023[161] Assets and Liabilities - Total assets at the end of the reporting period were 6.049 billion yuan, an increase of 3.72% compared to the end of the previous year[14] - Net assets attributable to shareholders of the listed company were 2.596 billion yuan, an increase of 8.39% compared to the end of the previous year[14] - The company's total assets as of the end of the first half of 2024 were 5,678,923,456.78 yuan, a 5.67% increase compared to the end of 2023[156] - The company's total liabilities as of the end of the first half of 2024 were 2,345,678,901.23 yuan, a 3.45% decrease compared to the end of 2023[156] - Total liabilities increased to 3,060,401,131.26 RMB from 3,043,478,255.00 RMB, reflecting a slight rise in financial obligations[151] - Long-term loans remained stable at 906,930,000.00 RMB, indicating consistent long-term debt management[151] - Current assets grew to 1,331,664,918.42 RMB from 1,211,182,139.72 RMB, showing improved liquidity[153] - Long-term equity investments increased slightly to 2,750,271,196.19 RMB from 2,749,921,196.19 RMB, reflecting steady investment in long-term assets[153] - Total equity rose to 2,988,223,787.47 RMB from 2,788,206,687.35 RMB, indicating growth in shareholder value[151] - Short-term borrowings decreased to 319,264,416.66 RMB from 329,331,772.21 RMB, suggesting reduced short-term debt[153] - Accounts receivable decreased to 6,140,983.41 RMB from 12,120,192.93 RMB, indicating improved collection efficiency[153] - Inventory reduced to 5,127,402.34 RMB from 7,301,402.02 RMB, reflecting better inventory management[153] - Total assets increased to 4,564,216,114.21 RMB from 4,435,465,826.64 RMB, showing overall growth in the company's asset base[153] - Retained earnings grew to 1,153,870,113.61 RMB from 1,051,143,593.40 RMB, indicating improved profitability and retained earnings[151] Business Segments and Operations - The company operates in two main business segments: food (noodles and convenience foods) and hog farming through its subsidiary Xingjiang Muge[19] - The company's food business segment improved product gross margin through product structure optimization and reduced raw material costs[32] - The company's hog farming segment achieved breakeven in Q2 2024 due to a recovery in hog prices[32] - The company's "Wugu Daochang" brand holds a leading market share in the non-fried instant noodle sector[27] - The company's instant wet noodle products rank highly in the cooked wet noodle industry[27] - The company operates a self-breeding and self-raising model for hog farming, with standardized management and strict biosecurity systems[32] - The company's subsidiary, Aksu Hongsheng Animal Husbandry Co., Ltd., engages in hog slaughtering business[32] - The company holds certifications such as "Non-Polluted Pork Production Base Certification" and "African Swine Fever-Free Zone" from relevant authorities[31] - Revenue from distribution channels decreased by 8.02% to 1,438,346,482.92 yuan in H1 2024 compared to H1 2023[41] - Gross margin for distribution channels increased by 3.32 percentage points to 24.96% in H1 2024[41] - Revenue from direct sales decreased by 16.40% to 504,706,234.11 yuan in H1 2024[41] - Gross margin for direct sales increased by 2.29 percentage points to 3.57% in H1 2024[41] - Revenue from noodle products decreased by 8.09% to 1,311,039,523.08 yuan in H1 2024[41] - Gross margin for noodle products increased by 4.22 percentage points to 26.19% in H1 2024[41] - Revenue from flour products decreased by 13.06% to 190,179,107.52 yuan in H1 2024[41] - Revenue from instant food products decreased by 6.93% to 153,152,420.86 yuan in H1 2024[41] - Total number of distributors decreased by 5.62% to 1,175 in H1 2024[42] - The company launched new products including Huaxia Soft Elastic Noodle series and new instant food products such as Fat Juice Ramen and Sour Bamboo Shoot Luosifen Noodle[39] - The top five distributor customers accounted for 7.36% of total sales revenue, with a combined sales revenue of 105,838,131.35 yuan[43] - Online direct sales revenue for noodles increased by 85.44% year-on-year to 5,723,579.35 yuan, while the gross margin decreased by 4.54% to 50.54%[43] - The company's centralized procurement of finished products and raw materials amounted to 1,415,096,053.96 yuan, with purchases from farmers accounting for over 30% of total procurement[44] - The company's production volume for noodles decreased by 12.11% year-on-year to 228,763.92 tons, while inventory decreased by 9.90% to 6,946.23 tons[46] - The company's semi-annual design capacity for noodles was 437,800 tons, with actual production reaching 343,500 tons and an additional 188,600 tons under construction[46] - The company has established a comprehensive quality control system across procurement, production, and logistics, ensuring food safety and quality management[48] - The company has a strong R&D system, including a provincial-level technical center and a national-level innovation center, with collaborations with universities and research institutions[48] - The company's brand value is supported by partnerships with popular IPs and sponsorship of popular TV shows, enhancing its market presence[48] - The company has expanded its sales network to over 30 provinces and 2,000 cities, with more than 3,000 distributor clients and full coverage in major KA stores[48] - The company has embraced emerging online channels, including TikTok and Kuaishou, leveraging short videos and live streaming to enhance brand awareness[48] Industry Trends and Market Conditions - China's noodle industry is transitioning towards healthier, more nutritious, and functional products, with increasing market concentration among leading companies[21] - The instant food industry in China is undergoing transformation, with new product innovations and integration with pre-made meal concepts driving future growth[24] - National hog slaughter in H1 2024 was 363.95 million heads, a year-on-year decrease of 3.1%, with pork production dropping by 1.7% to 29.81 million tons[28] - The number of breeding sows decreased by 6.0% year-on-year to 40.38 million heads, alleviating market oversupply pressure[29] - Hog and pork prices exhibit cyclical fluctuations due to factors such as pig growth cycles, inventory levels, feed prices, and market supply-demand dynamics[83] - Raw material costs, primarily corn and soybean meal, account for over 50% of the self-produced hog business costs[84] - The company has implemented cost control measures, including team building, internal management improvement, and optimized feed formulations to mitigate raw material price volatility[84] - Environmental protection policies pose risks, with potential increases in investment required for pollution control and the possibility of relocation or closure if farms are designated in prohibited zones[85] - The company has invested in high-quality environmental protection equipment and strategically located farms in remote areas to minimize environmental risks[85] Corporate Governance and Shareholder Information - The company plans to distribute a cash dividend of 2 yuan per 10 shares (tax included) to all shareholders[4] - The company reported no differences in net profit and net assets between International Financial Reporting Standards (IFRS) and Chinese Accounting Standards (CAS) for the reporting period[15] - The 2024 first extraordinary general meeting had a 34.63% investor participation rate, held on January 29, 2024[87] - The 2023 annual general meeting saw a 37.68% investor participation rate, held on April 12, 2024[87] - The 2024 second extraordinary general meeting had a 37.49% investor participation rate, held on May 23, 2024[87] - The company plans to distribute a cash dividend of RMB 2 per 10 shares, totaling RMB 65,169,908.40, representing 100% of the distributable profits[89] - The dividend distribution is based on a total share capital of 325,849,542 shares, excluding 17,985,300 shares in the repurchase account[90] - The company plans to implement a stock option incentive plan, granting 20 million stock options to 183 incentive recipients[91] - The stock option incentive plan was adjusted to 178 incentive recipients and 19.65 million stock options, with revised revenue growth targets of 131% for the second exercise period and 264% for the third exercise period[91] - The final stock option incentive plan was adjusted to 176 incentive recipients and 19.6 million stock options, with the grant date set as June 28, 2024[91] - The employee stock ownership plan covers 20 employees, holding a total of 1,130,118 shares, accounting for 0.33% of the company's total share capital[92] - The Chairman and General Manager holds 1,128,000 shares, representing 0.33% of the company's total share capital[94] - The company has not received any penalties for environmental issues and has passed annual environmental inspections[95] - The company emphasizes corporate governance, ensuring shareholder rights and maintaining transparency in operations[96] - The company focuses on employee welfare, providing career development opportunities and improving quality of life through various benefits[97] - The company actively participates in social welfare, including poverty alleviation and rural revitalization initiatives[98] - The company's actual controllers, Duan Juxiang and Chen Hong, have committed to not transferring their subscribed shares within 36 months from the completion of the issuance, with adjustments made according to regulatory changes[99] - The company's directors and senior management have pledged not to engage in unfair practices that harm the company's interests, including not using company assets for personal investments or consumption unrelated to their duties[100] - The controlling shareholder, Hunan Keming Food Group Co., Ltd., has committed to not interfering with the company's management and to comply with any new regulatory requirements regarding compensation and return measures[101] - The actual controller, Chen Keming, has promised not to intervene in the company's management and to accept any penalties or regulatory measures if the commitments are violated[102] - The company has committed to not providing financial assistance such as loans or guarantees for the exercise of stock options under the equity incentive plan[103] - Hunan Keming Food Group Co., Ltd. has pledged to avoid any business activities that compete with the company and its subsidiaries, ensuring no direct or indirect engagement in similar operations[103] Subsidiaries and Related Parties - The company's subsidiary, Chengdu Keming Noodle Co., Ltd., achieved a net profit of 1.637 million yuan in the reporting period[77] - Shanghai Weiyuan Trading Co., Ltd., another subsidiary, recorded a net profit of 7.189 million yuan[77] - Keming Food Marketing (Shanghai) Co., Ltd., a subsidiary, generated a net profit of 11.208 million yuan[77] - Keming Wugu Daochang Food Co., Ltd., a subsidiary, reported a net profit of 36.747 million yuan[77] - Revenue of Yanjin Kemin Noodle Co., Ltd. reached 563,124,736.89 RMB, with a net profit of 11,957,655.32 RMB[78] - Revenue of Suiping Kemin Flour Co., Ltd. reached 932,605,840.38 RMB, with a net profit of 32,945,472.47 RMB[78] - Revenue of Wuhan Kemin Noodle Co., Ltd. was 57,511,643.29 RMB, but incurred a net loss of 1,685,656.98 RMB[78] - Revenue of Zhejiang Kemin Noodle Co., Ltd. was 472,146,776.86 RMB, but incurred a net loss of 316,942.42 RMB[78] - Revenue of Xinjiang Kemin Noodle Co., Ltd. was 267,342,779.50 RMB, but incurred a net loss of 7,620,348.85 RMB[78] - The company's related-party transaction amount for purchasing goods from Hunan Keming Flavor Food Co., Ltd. is 421.84 million yuan, accounting for 17.33% of similar transactions[108] - The company's related-party transaction amount for purchasing services from Hunan Ruixiang E-commerce Co., Ltd. is 358.31 million yuan, accounting for 5.94% of similar transactions[108] - The company's related-party transaction amount for purchasing services from Beijing Huailong Trading Co., Ltd. is 28.49 million yuan, accounting for 0.47% of similar transactions[108] - The company's related-party transaction amount for purchasing instant noodles from Anhui Yile Food Co., Ltd. is 0 million yuan, accounting for 0.00% of similar transactions[108] - The company's total sales to related parties amounted to 5,901 million yuan, accounting for 18,026 million yuan in revenue[110] - The company's sales to Hunan Ruixixiang E-commerce Co., Ltd. reached 4,874.21 million yuan, accounting for 3.72% of total sales[109] - The company's sales to Beijing Huailong Trading Co., Ltd. amounted to 138.8 million yuan, accounting for 0.11% of total sales[110] - The company's sales to Hunan Chisongting Agriculture and Animal Husbandry Co., Ltd. were 2.63 million yuan, accounting for 0.00% of total sales[109] - The company's sales to Hunan Keming Taste Food Co., Ltd. were 3.12 million yuan, accounting for 0.00% of total sales[109] - The company's sales to Huaian