On the evening of March 28, the pot ring (02517. HK) released its first financial report after listing on the Hong Kong Stock Exchange. In 2023, the company achieved revenue of 6.094 billion yuan, gross profit of 1.351 billion yuan, a year-on-year increase of 8.2%, gross profit margin of 22.2%, an increase of nearly 5% compared with the same period in 2022, and adjusted net profit of 318 million yuan, an increase of 23.8% year-on-year. At the same time, the cash reserve of Guoquan increased from 1.263 billion yuan in 2022 to 1.935 billion yuan, and the development was more stable.
Although the revenue fell slightly by 15% compared with the same period last year, the pot ring still achieved a revenue scale of 6.094 billion yuan, showing its stable position in the market competition. At the same time, in terms of net profit, the pot ring has also achieved significant growth. Adjusted net profit reached 318 million yuan, an increase of 23.8% year-on-year. This achievement not only exceeded market expectations, but also demonstrated the efforts and results of the pot ring in improving profitability.
In addition, the gross profit and gross profit margin of the pot ring also showed a positive growth trend. In 2023, the company's gross profit reached 1.351 billion yuan, a year-on-year increase of 8.2%. At the same time, gross profit margin also increased by 4.8 percentage points to 22.2% from 17.4% in the same period of 2022. This improvement is mainly due to the improvement of the company's bargaining power under the scale effect and the quality, safety and cost advantages built by the vertically integrated supply chain. By optimizing procurement channels, reducing procurement costs, and improving production efficiency, the pot ring has successfully achieved the dual goals of cost control and quality improvement.
In addition to the growth of revenue and profitability, the capital reserves and cash flow of the pot ring also performed well. In 2023, the company's cash reserves increased from 1.263 billion yuan in 2022 to 1.935 billion yuan, demonstrating the company's strong financial strength and good liquidity. At the same time, cash from operating activities also increased from 285 million yuan to 678 million yuan, indicating that the company's operating activities continue to generate stable cash flow. In addition, the company's net asset value reached RMB3.379 billion, and the asset-liability ratio decreased to 3.3% from 4.9% in 2022, further highlighting the company's stable financial position and excellent solvency.
Overall, Guoquan Food (Shanghai) Co., Ltd. showed a steady operating growth trend and continuously enhanced profitability in its first financial report after listing. This is mainly due to the company's continuous efforts in improving its bargaining power under the scale effect, building a vertically integrated supply chain with quality, safety and cost advantages, and upgrading the product structure. Looking forward to the future, Guoquan will continue to maintain its strategic focus, increase investment in innovation, optimize product structure, and improve service quality to achieve more stable and sustainable development.