WEILONG Delicious Global (9985) H1 2024 earnings summary

Executive summary

• Revenue for the first half of 2024 rose 26.3% year-over-year to RMB2,938.6 million, driven by omni-channel expansion, product innovation, and brand building.

• Net profit increased 38.9% year-over-year to RMB621.2 million, with net profit margin up to 21.1%.

• Gross profit margin improved by 2.3 percentage points to 49.8%, mainly due to higher capacity utilization and lower raw material costs.

• Interim dividend of RMB0.16 per share declared, representing about 60% of net profit.

• Focused on strengthening brand reputation, targeting young consumers, and enhancing supply chain efficiency.

Financial highlights

• Gross profit reached RMB1,462.3 million, up 32.2% year-over-year.

• Basic and diluted EPS were RMB0.27, up 42.1% year-over-year.

• Distribution and selling expenses rose 29.5% to RMB475.5 million; administrative expenses increased 10.5% to RMB242.3 million.

• Other net income surged 74.1% to RMB44.4 million, mainly from increased government subsidies.

• Inventory turnover days improved from 73 to 51.

Outlook and guidance

• Plans to launch new products and categories, strengthen brand building, and expand omni-channel and overseas networks.

• Aims to enhance operational efficiency and digital intelligence, focusing on long-term, sustainable growth.

• Commitment to maximizing value for all stakeholders and maintaining sustainable growth.