Xiamen Yan Palace Bird's Nest Industry (1497) H1 2024 earnings summary

Executive summary

• H1 2024 revenue rose 11.36% YoY to RMB1,059.30m, while net profit fell 44.07% to RMB60.05m amid lower gross margin and higher brand-promotion costs.

• Online channel growth and new EBN+ products supported sales; the new smart factory opened in May, while management plans to expand products, channels and brand investment.

Financial highlights

• Revenue RMB1,059.304m, up 11.36% YoY; gross profit RMB513.799m, up 5.41%; cost of sales RMB545.505m, up 17.63%.

• Operating profit RMB81.538m vs RMB139.893m; profit before tax RMB78.006m vs RMB138.873m; net profit RMB60.045m vs RMB107.365m.

• Basic and diluted EPS RMB0.12 vs RMB0.23; profit attributable to equity holders RMB58.080m vs RMB101.075m.

• Selling and distribution expenses rose 38.45% to RMB365.27m, mainly from advertising; administrative expenses fell 18.20% to RMB62.60m as listing-related professional fees declined.

Outlook and guidance

• Priorities include strengthening brand potential, developing diversified product lines, improving user experience, deepening customer relationships and expanding the sales network; no numerical guidance was stated.

• Cultural tourism, industrial tourism and special-channel sales are being developed as potential new revenue sources; management expects the cultural tourism channel to become a growth point.