Xiamen Yan Palace Bird's Nest Industry (1497) H2 2024 earnings summary

Executive summary

• FY2024 revenue rose 4.37% YoY to RMB2.05bn, while net profit fell 24.18% to RMB160.4m amid higher selling and distribution costs and lower gross margin.

• Sales growth came from online channels and bird’s nest-plus products; offline revenue declined. Management is targeting revenue to double over five years through product expansion, channel development and overseas growth.

Financial highlights

• Revenue increased 4.37% to RMB2,050.0m; gross profit rose 1.79% to RMB1,012.8m, while cost of sales increased 7.01% to RMB1,037.2m.

• Operating profit decreased to RMB213.6m from RMB276.2m; profit before tax was RMB206.6m versus RMB273.3m, and net profit fell to RMB160.4m from RMB211.6m.

• Net profit attributable to shareholders was RMB156.3m versus RMB201.2m; basic and diluted EPS were RMB0.34 versus RMB0.46.

• Selling and distribution expenses rose 19.08% to RMB670.8m, mainly on higher advertising and promotion spending; administrative expenses fell 12.64% to RMB139.3m as listing-related professional fees declined.

• R&D expenses increased 8.19% to RMB28.5m; other net income rose 29.38% to RMB39.5m, mainly due to higher government grants.

Outlook and guidance

• Targeting revenue to double over five years, with a shift from a single-category business toward broader nourishment solutions; 2025 is designated a strategic execution year.

• Plans to develop a three-tier product mix of pure bird’s nest, bird’s nest-plus and products featuring bird’s nest as an ingredient; priorities include bird’s nest porridge, peptide products and new usage occasions.

• 2025 plans include New York and Singapore stores, US and Southeast Asian cross-border e-commerce, county-level expansion in China and broader retail distribution.