2022-09-14-港交所-周黑鸭_2022中期报告_74页_8mb

Zhou Hei Ya International Holdings Company Limited 2022 Interim Report Summary

1. Company Background

• Company Name: Zhou Hei Ya International Holdings Company Limited (周黑鸭国际控股有限公司), Stock Code: 1458.
• Business: Primarily engaged in the production, marketing, and retailing of duck-related casual food in Mainland China.
• Market Listing: Listed on The Stock Exchange of Hong Kong Limited (Stock Code: 0998) and registered in the Cayman Islands.

2. Market Environment and Business Review

• Market Trend: June 2022 is marked by recurring COVID-19 outbreaks across China, impacting consumer behavior and economic activity.
• Business Performance:
  • Store Network: As of June 30, 2022, total stores reached 3,160 (1,342 owned, 1,818 franchisee). Geographic coverage expanded to 297 cities across 27 provinces.
  • Revenue Decline: Total revenue decreased by 18.7% year-over-year to RMB 1.18 billion. Sales attributed to franchises increased by 39.9%.
  • Franchise Focus: Emphasized "self-operation + franchise" dual model, expanding community stores nationwide.
  • Digitalization: Internet O&O business contributed 32.1% of revenue. Investment in e-commerce and livestreaming platforms increased.
  • Product Innovation: Introduced crayfish balls as a signature product, driving growth in the new category.

3. Financial Performance

• Revenue: RMB 1.18 billion (vs. RMB 1.45 billion in 2021).
• Gross Profit: RMB 671.5 million (decrease of 14.5% YoY).
• Net Profit: RMB 18.4 million (decrease of 92.0% YoY).
• Cash Flow:
  • Operating Activities: Net cash used was RMB 341.6 million.
  • Investing Activities: Net cash used was RMB 368.6 million, primarily for purchasing financial assets.
  • Financing Activities: Net cash used was RMB 341.6 million, including repurchase of convertible bonds.

4. Business Outlook

• Challenges: Ongoing COVID-19 impact, global inflation, and uncertainty in supply chains pose risks.
• Opportunities: Digital transformation, new product innovations (e.g., crayfish balls), and expanding community stores.
• Strategy: Accelerate "low-cost and flexible" store expansion, enhance digital consumer engagement, and optimize supply chain efficiency.

5. Significant Developments

• Convertible Bonds: Repurchased HK 401 million of the Convertible Bonds, totaling 25.87% of the original issue.
• Dividend Policy: No interim dividend declared for the six months ended June 30, 2022.

6. Governance and Shareholder Matters

• Director and Shareholder Interests: Clear disclosure of controlling shareholders and significant investors, including Tang Jianfang and Cantrust (Far East) Limited.
• ESG: No material ESG matters or commitments specifically reported.

7. Conclusion

• The Group faced revenue challenges due to the COVID-19 pandemic but maintained focus on digital growth and franchise expansion. Despite financial pressure, it is adopting a multi-pronged approach to stimulate future growth.