Xiamen Yan Palace Bird's Nest Industry (1497) H2 2023 earnings summary

Executive summary

• FY2023 revenue rose 13.5% YoY to RMB1,964.2m; net profit increased 2.8% to RMB211.6m, while adjusted net profit grew 15.8% to RMB244.4m.

• Growth reflected expansion in pure bird’s nest products and faster growth in EBN-plus and skincare categories; gross margin remained broadly stable at 50.7%.

Financial highlights

• Revenue was RMB1,964.2m, up 13.5% YoY; gross profit was RMB994.9m, up 13.3%.

• Operating profit increased to RMB276.2m from RMB266.2m; profit before tax was RMB273.3m versus RMB264.6m.

• Net profit was RMB211.6m, up 2.8%; basic and diluted EPS was RMB0.46 versus RMB0.44.

• Adjusted net profit, excluding share-based payment and listing expenses net of related tax, rose 15.8% to RMB244.4m.

Outlook and guidance

• Priorities include strengthening the master brand and sub-brands, expanding products for varied consumer groups, and deepening omnichannel distribution and customer relationships.

• Plans include expanding R&D, supply-chain collaboration, digitization and production capacity through a new automated base in Xiamen; completion is expected to support efficiency and growth.

• Management cautioned that economic recovery may be weaker than expected, with post-pandemic shifts in consumption and external uncertainty posing ongoing challenges.