Guoquan: Continuously Expanding the Business Scale While Enhancing Profitability
2024年3月29日 - 7:02PM
JCN Newswire
Guoquan Food (Shanghai) Co., Ltd. ("Guoquan" or "the Company";
Stock Code: 2517.HK) is pleased to announce the consolidated
results of the Company and its subsidiaries for the year ended
December 31, 2023 (the "Reporting Period").
In 2023, the Chinese economy showed a sustained recovery and steady
improvement. Despite the challenges, which posed threats to
consumer-oriented enterprises, Guoquan responded by effectively
managing the supply chain and enhancing operational efficiency,
thereby bolstering the profitability. During the Reporting Period,
Guoquan recorded the revenue of RMB6,094.1 million, the gross
profit of approximately RMB1,350.9 million, reflecting an 8.2%
year-on-year growth, and the gross profit margin of approximately
22.2%, improving 4.8 percentage points from 17.4% in the same
period of 2022. Furthermore, Guoquan achieved the net profit of
approximately RMB263.4 million, representing an increase of 9.3%
compared to the same period in 2022. The adjusted net profit
reached approximately RMB318.0 million, marking a year-on-year
increase of 23.8%. Besides, the operating cash flow represents a
year-on-year increase of 137.7% to reach RMB678.3 million.
On November 2, 2023, Guoquan was listed on the Main Board of the
Hong Kong Stock Exchange, marking a new milestone in the
development. Starting from March 4, 2024, Guoquan officially
accessed to the Hong Kong Stock Connect, which is expected to
enhance the liquidity of the Company's stock and gradually
highlight its investment value. Additionally, to better reward
shareholders, the board of directors proposed the payment of final
cash dividend of RMB 0.0521 per share (inclusive of tax), with an
estimated total distribution of RMB 143 million, demonstrating
Guoquan's emphasis on shareholder interests.
Expansion of offline stores and acceleration of online channels
In terms of channels, Guoquan has established a nationwide store
network to occupy market share. During the Reporting Period,
Guoquan's store network expanded despite the sluggish consumption
trend. As of the end of 2023, Guoquan had 10,307 retail stores,
covering 31 provinces, autonomous regions, and municipalities, a
net increase of 1,086 in the number of stores compared to the end
of 2022, further expanding the market influence.
Meanwhile, to empower franchisees and facilitate the sales growth
as well as further our consumer reach and offer more flexible
shopping experience, we have established multiple online channels,
including Guoquan APP, WeChat mini-program, third-party food
delivery platforms, Douyin and other popular social commerce
platforms. In 2023, through multi-level Douyin accounts for live
streaming of Guoquan products or posting related short videos, the
total views exceeded 6 billion times.
By establishing close online and offline connections and
interactions with consumers, Guoquan achieved a record high number
of members, with the top-up amount increasing by 18% annually to
approximately RMB720 million. As of the end of 2023, Guoquan had
approximately 27.9 million registered members.
Continuous Enrichment of product matrix and digital intelligence
driving product innovation
Guoquan has provided offered diversified, tasty, convenient and
affordable home meal products in a one-stop shop manner for
consumers across a wide range of dining scenarios. With deep
consumer insights and R&D efforts, Guoquan has collaborated
closely with suppliers and R&D centers to consistently improve
its range of products to align with evolving consumer demands and
preferences.
In regards to product development, Guoquan leveraged digital tools
to analyze consumer behavior, gained in-depth insights into
consumers, accurately assessed market trends, and launched new
products and upgraded existing ones accordingly. Guoquan also
regularly introduced products tailored to local markets to cater to
different consumer preferences across regions. In 2023, Guoquan
successfully launched a total of 339 new SKUs.
As of December 31, 2023, Guoquan's product portfolio comprises
eight categories including hotpot products, barbecue products,
beverages, solo-dining meals, ready-to-cook meal kits, fresh
produce, western cuisines and snacks, covering diverse dining needs
of consumers comprehensively.
In 2023, the gross profit margin of Guoquan was approximately
22.2%, representing an increase of 4.8 percentage points as
compared to 17.4% in the corresponding period in 2022. This
improvement was mainly attributable to better cost control
resulting from Guoquan's advantageous scale, along with the
development of new products, upgrading of existing products, and
the increased proportion of self-production following the
acquisition of factories.
Steadily advancing the "three-sphere integrated" development
strategy to solidify market leadership
Looking ahead, Guoquan will maintain its commitment to the
three-sphere integrated development strategy encompassing brand,
product, and channel. This includes expanding product categories,
strengthening omni-channel sales network, increasing investments in
brand building and marketing, and exploring consumer scenarios to
improve consumer value and further solidify the market leadership.
Furthermore, Guoquan aims to leverage digital tools to empower both
upstream supply chain and downstream franchisees, with the goal of
tasty, convenient and affordable home meal products to a diverse
consumer base across various channels and scenarios.
Specifically, in terms of channel construction, Guoquan will
continue to expand and deepen our omni-channel sales network to
further our direct reach to consumers. Strengthen the depth and
breadth of the offline store network by deepening offline market
penetration in regions already covered, expanding the store network
to new regions and by various store types. Further develop our
online sales platforms to realize mutual empowerment of offline and
online, driving the increase of sales revenue. Moreover, Guoquan
will continue to cultivate more entrepreneurial franchisees by
encouraging our existing franchisees to open more franchised
stores, and propel their sales growth and cultivate entrepreneurial
franchisees by continuously expanding to more product categories,
upgrading our product portfolio, and developing more online
leads.
Guoquan have created a diversified product portfolio in terms of
both product categories as well as the consumption scenarios it
serves, and in the future, Guoquan will continue to explore
campsite dining as a new consumption scenario, explore sales
channels for enterprise customers and strengthen the regionalised
supply chain of home meal products, so as to provide a wider range
of regionalised meal products to cater to consumer needs.
In terms of products, Guoquan will continue to enhance our R&D
capability and continue to collaborate with upstream suppliers to
improve our R&D and innovation capability. Meanwhile, further
integrate Guoquan's upstream resources and source quality food
ingredients through investment in or partnerships with selective
and qualified Chinese and overseas food suppliers who have market
potential and can achieve synergy with Guoquan, so as to reinforce
Guoquan's core competitive edges.
In terms of digitization, Guoquan will continue to enhance
digitization by further improving its procurement and fulfilment
management platforms and promoting the development of its
membership system, with a view to improving its overall operational
efficiency and boosting the growth of sales revenue.
In terms of brand building, Guoquan will increase its investment in
brand building and marketing by stepping up its marketing efforts
in high-profile TV advertisement, offline advertisement, community
group buy and social e-commerce platforms in order to further
deepen consumer reach and raise consumer stickiness, thereby
elevating brand recognition, brand awareness, brand reputation and
consumer loyalty.
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