HEBEI YANGYUAN ZHIHUI BEVERAGE (603156) Q2 2024 earnings summary

Executive summary

• Revenue for the first half of 2024 was RMB 2.94 billion, down 2.02% year-over-year due to weaker market demand.

• Net profit attributable to shareholders rose 12.97% year-over-year to RMB 1.03 billion.

• Operating cash flow dropped sharply by 97.02% year-over-year, mainly due to lower cash received from sales.

• The company maintained its leading position in the walnut protein beverage market and continued to innovate in product and channel development.

Financial highlights

• Gross margin improved as cost of sales fell 5.33% year-over-year, benefiting from lower raw material prices.

• Basic EPS was RMB 0.8143, up 13.05% year-over-year; ROE increased to 9.04%.

• Net assets attributable to shareholders decreased 12.11% from the end of last year to RMB 9.71 billion.

• Total assets declined 19.69% to RMB 12.95 billion.

• Non-recurring profit items contributed RMB 255 million, mainly from investment gains and fair value changes.

Outlook and guidance

• The company expects continued growth opportunities in the plant-based protein beverage sector, driven by health and consumption trends.

• Management will focus on product innovation, channel expansion, and cost control to maintain competitiveness.