Yihai Kerry Arawana Holdings (300999) H1 2024 earnings summary

Executive summary

• Revenue for H1 2024 was RMB 109.48 billion, down 7.78% year-over-year, mainly due to product price declines despite higher sales volumes in key categories.

• Net profit attributable to shareholders rose 13.57% year-over-year to RMB 1.10 billion, with adjusted net profit (excluding non-recurring items) up 1,013.79% to RMB 160.69 million.

• Gross margin improved to 4.90% from 4.15% year-over-year, driven by lower raw material costs and improved profitability in feed ingredients and oil technology.

• Cash flow from operations dropped 84.76% year-over-year, mainly due to lower revenue and changes in procurement/payment cycles.

Financial highlights

• H1 2024 revenue: RMB 109.48 billion (-7.78% year-over-year); net profit: RMB 1.10 billion (+13.57% year-over-year).

• Adjusted net profit (excluding non-recurring items): RMB 160.69 million (+1,013.79% year-over-year).

• Gross margin: 4.90% (up 0.75 percentage points year-over-year).

• Basic and diluted EPS: RMB 0.20 (+11.11% year-over-year).

• Total assets at period end: RMB 213.04 billion (-10.68% from year-end 2023).

Outlook and guidance

• Company expects continued pressure on product prices but aims to offset with volume growth and cost control.

• Focus remains on expanding product lines, optimizing supply chain, and leveraging brand strength for future growth.