Shenzhen Pagoda Industrial (Group) (2411) H2 2024 earnings summary

Executive summary

• FY2024 revenue fell 9.8% to RMB10.27bn; the year moved from net profit of RMB340.0m to net loss of RMB399.8m amid weak demand, store network rationalization and strategic investment.

• Strategy centers on high-quality, cost-effective products, more efficient retail operations, wider 2B and overseas distribution, and stronger digital and supply-chain capabilities.

Financial highlights

• Gross profit fell 41.9% to RMB764.4m; operating results swung from RMB416.6m profit to RMB341.5m loss.

• Loss before tax was RMB391.5m; net loss was RMB399.8m, versus prior-year profit of RMB381.0m and RMB340.0m, respectively.

• Loss attributable to owners was RMB386.0m; basic and diluted loss per share was RMB0.2552, versus earnings of RMB0.2297 in 2023.

• Adjusted net loss, excluding listing expenses, property and equipment impairment, and share-based payments, was RMB328.1m; adjusted net loss margin was 3.19%.

Outlook and guidance

• Retail priorities include a cost-effective core product range, differentiated products, improved store-level profitability, stronger freshness and quality controls, and expanded fruit gift offerings.

• 2B plans focus on broader product categories, domestic and overseas channels, and deeper partnerships with tea beverage and health-sector businesses.

• Category-brand development will use supplier and agricultural technology partnerships; product innovation and end-to-end food safety remain priorities.