ZJLD Group (6979) H2 2024 earnings summary

Executive summary

• Revenue grew 0.5% year-over-year to RMB7,066.8 million, with gross profit up 1.5% to RMB4,143.0 million.

• Net profit declined 43.1% to RMB1,323.6 million due to one-off items in 2023 and increased share-based payment expenses in 2024.

• Adjusted net profit (non-IFRS) rose 3.3% to RMB1,676.3 million, with adjusted net profit margin improving to 23.7%.

• Zhen Jiu remained the largest revenue contributor (63.4%), followed by Li Du (18.6%), Xiang Jiao (11.4%), and Kai Kou Xiao (4.8%).

• The company maintained a net cash surplus and declared a final dividend of HKD0.21 per share.

Financial highlights

• Gross profit margin increased to 58.6% from 58.0% year-over-year.

• Net cash from operating activities more than doubled to RMB781.0 million.

• Selling and distribution expenses decreased 0.9% to RMB1,611.4 million; administrative expenses rose 20.4% to RMB576.4 million.

• Finance costs surged 191.9% to RMB12.9 million due to higher bank borrowings.

• Capital expenditure reached RMB996.0 million, mainly for production facilities and land use rights.

Outlook and guidance

• The company expects continued industry challenges in 2025 but remains focused on high-quality, sustainable growth.

• Plans include expanding consumption scenarios, optimizing distribution channels, and investing in premium and mid-range products.

• 2025 marks the 50th anniversary of Zhen Jiu, with extensive brand-building and promotional activities planned.