Anjoy Foods Group (603345) H2 2024 earnings summary

Executive summary

• Revenue reached ¥15.13 billion, up 7.70% year-over-year; net profit attributable to shareholders was ¥1.48 billion, up 0.46% year-over-year.

• Gross margin improved to 23.30%, with main growth from frozen prepared foods and new retail channels.

• Cash dividend payout ratio reached 70.05% of audited net profit, with total cash dividends and buybacks of ¥1.04 billion.

• The company maintained its industry leadership in the Chinese frozen food sector, expanding product lines and channel penetration.

• Audit opinion was standard unqualified; no material deficiencies in internal control.

Financial highlights

• Operating income: ¥15.13 billion, up 7.70% year-over-year; operating cost: ¥11.60 billion, up 7.58%.

• Net profit attributable to shareholders: ¥1.48 billion, up 0.46% year-over-year; basic and diluted EPS: ¥5.08.

• Operating cash flow: ¥2.10 billion, up 7.58% year-over-year.

• Gross margin: 23.30%, up 0.09 percentage points; net margin: 9.81%.

• Net assets attributable to shareholders: ¥12.95 billion, up 2.57% from prior year-end.

Outlook and guidance

• The company will continue its “three-pronged” strategy in frozen prepared foods, prepared dishes, and rice/noodle products.

• Plans to expand production capacity, especially in Sichuan, Xiamen, and Taizhou, with new projects scheduled through 2029.

• Focus on channel expansion, digitalization, and internationalization, including H-share listing preparations.

• Emphasis on cost control, product innovation, and high-value product mix to counteract industry price competition.