According to the financial report, Petty shares in 2023 will be 1.411 billion yuan in 2023, down 18.51% from 2022, and the revenue in the first quarter of 2024 will be 384 million yuan, and the net profit will be 41.71 million yuan.
As of April 24, the closing price of Petty Pet was 14.54 yuan per share, up 13.15%, and the latest market value was 3.685 billion yuan.
The financial report is as follows:
Petty's annual revenue exceeded 1.4 billion
Revenue in the first quarter of this year was 384 million yuan, an increase of more than 140%
Petty's annual revenue in 2023 will be 1.411 billion yuan, down 18.51% year-on-year from 2022, and the net profit attributable to shareholders of listed companies will be -11.09 million yuan, down 108.72% year-on-year.
The financial report briefly analyzes the company's operating situation in 2023 as follows:
1. The changes in the main business income in the domestic and foreign markets show a large difference. Affected by the destocking of overseas markets, especially the U.S. market, the year-on-year growth rate in a single quarter declined to varying degrees in the first three quarters, which is also the core factor affecting the company's 2023 annual performance.
2. Cost situation. During the reporting period, the cost structure of the company's main business remained stable, and the cost of raw materials accounted for more than 70%, which is still the most important part of the cost and the key to the company's future cost management.
3. Gross profit margin analysis. In 2023, the comprehensive gross profit margin of the company's main business will be 19.33%, a year-on-year decrease of 2.97%. Insufficient capacity utilization due to the decline in export orders in the first three quarters was the main reason for the change in gross margin in FY 2023.
4. Analysis of sales expenses. The company firmly implemented the strategy of its own brand, and its sales expenses increased by 18.03%, of which the net increase in advertising expenses was 10.52 million yuan, a year-on-year increase of 24.38%, which was the largest increase in sales expenses.
5. Administrative expenses decreased by 8.45% over the same period last year, and financial expenses decreased by 112.11%, mainly due to the year-on-year decrease of 84.58% in foreign exchange income.
6. R&D expenses. In the context of the decline in main business income, the company still maintained a high R&D investment intensity.
In terms of quarters, Petty's revenue in the first quarter of 2023 was 158 million yuan and net profit was -38.07 million yuan, the second quarter revenue was 334 million yuan and net profit was -4.62 million yuan, the third quarter revenue was 423 million yuan and the net profit was 13.53 million yuan, and the fourth quarter revenue was 494 million yuan and the net profit was 18.06 million yuan.
Petit's revenue in the first quarter of 2024 was 384 million yuan, an increase of 142.37% year-on-year in the first quarter of 2023, and the net profit attributable to shareholders of listed companies was 41.71 million yuan, a year-on-year increase of 209.56%. According to the first quarterly report, the revenue growth of Petty shares was mainly due to the increase in orders in the current period.
The revenue of chewing gum exceeded 400 million yuan
The revenue of staple food and wet grain was 200 million yuan, an increase of more than 30%
In terms of products, Petty's revenue last year was 423 million yuan, accounting for 30.01% of the total revenue, down 22.11% year-on-year;
Plant chewing gum revenue last year was 422 million yuan, accounting for 29.96% of total revenue, down 34.84% year-on-year;
The revenue of nutritious meat snacks last year was 318 million yuan, accounting for 22.55% of the total revenue, a year-on-year decrease of 5.72%;
The revenue of staple food and wet grain last year was 200 million yuan, accounting for 14.88% of the total revenue, an increase of 31.33% year-on-year;
Other businesses had revenue of 36.73 million yuan last year, accounting for 2.60% of total revenue, down 11.86% year-on-year.
Foreign revenue was 1.061 billion yuan
domestic revenue was 349 million yuan, an increase of more than 26%
In terms of regions, Petty's foreign revenue was 1.061 billion yuan, accounting for 75.23% of the total revenue, down 27.10% year-on-year from 2022;
Domestic revenue was 349 million yuan, accounting for 24.77% of total revenue, an increase of 26.95% year-on-year in 2022.
The trends of operating income and net profit for each quarter of 2023 are shown in the chart below:
In terms of sales model, the revenue of ODM and distribution business was 1.227 billion yuan, accounting for 86.98% of the total revenue, a year-on-year decrease of 23.21% in 2022;
The revenue of direct selling business was 183 million yuan, accounting for 13.02% of the total revenue, an increase of 37.85% year-on-year in 2022.
According to the financial report, at present, Petty shares have opened online brand flagship stores or franchise stores on mainstream e-commerce platforms such as Tmall, JD.com, and Douyin, signed in-depth cooperation agreements with professional e-commerce companies such as E-pet Mall, and actively embraced new marketing models, and adapted to the Chinese market through new marketing methods such as live broadcast and the establishment of private domain traffic, so as to improve the efficiency of traffic conversion.
The company adopts a multi-channel sales strategy online. Among them, the first-level channel relies on traditional e-commerce platforms such as Tmall and JD.com for layout, and each brand's flagship store cooperates with its own franchise stores and online distribution to achieve sales targets, while the second-level channel is based on platforms such as Douyin, Xiaohongshu, Official Account, Weibo, etc., the core of which is to build a brand user traffic pool, improve the user operation system, and complete the direct and efficient conversion of brand users.
In terms of offline sales, the company has established close cooperation with regional agents and wholesalers in major provinces and cities across the country, adopted a dealer strategy of sub-channel and flat structure, and radiated its products to large shopping malls and terminal stores. The company is also trying to carry out in-depth cooperation with offline agents, transforming its functions into service providers, forming a more efficient cooperation model between the company, offline stores and service providers (agents), and creating a new type of cooperative relationship with more consistent interests. In addition, the company has implemented the offline distribution model of direct sales and agents in Beijing, Shanghai and Hangzhou.
Last year's sales expenses exceeded 100 million yuan
R&D investment is 29.03 million yuan
Judging from the expenses incurred by Petty shares last year, Petty's sales expenses will reach 100 million yuan in 2023, an increase of 18.03% year-on-year in 2022, and R&D expenses will be 29.03 million yuan, accounting for 2.06% of total revenue, an increase of 0.77% year-on-year in 2022.
At present, Petit has 171 R&D personnel, accounting for 4.22% of the total number of employees.
Major subsidiaries and shareholding companies that have an impact of more than 10% on the company's net profit
Description of the main holding and shareholding companies
1. Cambodia Juewei Food Co., Ltd. was in the stage of capacity ramp-up during the reporting period, and the production capacity was not fully released;
2. The fund-raising project "annual output of 40,000 tons of high-quality dry pet food project" implemented by New Zealand North Island Town Pet Food Co., Ltd. and New Zealand Natural Pure Pet Food Co., Ltd. is in the construction period;
3. Petit Zhichuang (Hangzhou) Pet Technology Co., Ltd. has not yet entered the profitable period because it has undertaken its own brand business in the domestic market.
Petty's future plans
Annual Priority Business Plan
1. OBM business plan: In 2024, we will continue to maintain the trend of high growth in operating income, strengthen the strategy of large single products, continue to increase investment in the field of staple food, and especially introduce the staple food products of New Zealand factories into the independent brand system. At the same time, we will continue to improve the growth quality of our own brands.
2. ODM business plan: the risk of overseas markets has been fully released, the industry has returned to a steady growth track, to give full play to the advantages of multinational manufacturing, strengthen the integration of resources, improve the ability to provide multi-dimensional services to existing core customers, focus on developing customers in the field of high-end staple food, and strive to further reduce customer concentration. Improve the operational efficiency of factories in New Zealand and Cambodia, put raw material procurement, employee skills training, production and quality management in a prominent position, and focus on improving order delivery capacity and gross profit margin.
Core Competency Enhancement Program
R&D and innovation to build a winning way: The company will continue to improve the R&D system and enhance the contribution of innovative products and scientific and technological progress to the business.
Financial management plan: strengthen financial budgets and final accounts, implement refined financial management, take annual goals and budgets as the main line, and track and manage business objectives on a monthly basis.
Talent management and corporate culture construction: With the goal of optimizing the talent structure and improving the talent density, the company will upgrade the company's talent pool, increase the talent reserve, improve the globalization level of the organization, and gradually launch corporate cultural activities to achieve a high consensus on cultural values.
Digitalization improves efficiency and empowers brands: Leverage new media technology to push the marketing activities of its own brands and products online, accurately reach consumers and empower brands, and improve the efficiency of procurement, production, inventory management and other activities through digitalization and informatization, so as to achieve real-time and visualization of costs and reduce losses.
Actively implement the plan of "double improvement of quality and return", actively carry out value management in the capital market, attach importance to the demands of investors, enrich value management methods with compliant and scientific means, actively communicate with investors, reach a consensus on value proposition, and continue to promote the linkage of the company's value management, value creation and value realization.