From 2017 to 2022, Haitian Flavor's revenue growth rate has gradually declined from double digits to low single digits, and it will eventually have negative growth in 2023.
On the evening of April 26, the 2023 annual report released by Haitian Flavor Industry (603288) showed that its revenue last year was 24.56 billion yuan, a decrease of 4.1%, which is the first reduction in revenue since Haitian Flavor was listed in 2014 and since 2009.
In 2020, its revenue growth rate was more than 15%, decelerated to 9.7% in 2022, further decreased to 2.4% in 2022, and did not stabilize growth in 2023, and finally fell by 4.1%.
The revenue of soy sauce, seasoning sauce and oyster sauce, the three main products of Haitian Flavor Industry, declined across the board, of which soy sauce completed revenue of 12.64 billion yuan, accounting for more than half, a decrease of 8.8% from 2022, seasoning sauce completed 2.43 billion yuan, a decrease of 6.1%, oyster sauce revenue decreased by 3.7% to 4.25 billion yuan, and other businesses increased by 19.4% to 3.5 billion yuan, but did not reverse the decline in total revenue in the end.
According to the annual report, the sales volume of soy sauce was 2.298 million tons, a decrease of 8.2%, corresponding to a revenue of 12.64 billion yuan, equivalent to 5,500 yuan per ton, in addition, the sauce was 8,571 yuan per ton, and the oyster sauce was 4,936 yuan per ton. In 2022, the revenue per ton of soy sauce, seasoning sauce and oyster sauce will be 5,537 yuan, 9,076 yuan and 5,031 yuan respectively, all of which will fall.
In 2023, the gross profit margin of soy sauce, condiment sauce and oyster sauce will be 42.63%, 35.49% and 29% respectively, of which the gross profit margin of soy sauce will increase by 2.34 percentage points, and the gross profit margin of condiment sauce and oyster sauce will decrease by 1.79 and 4.65 percentage points, respectively. The gross profit margin of other businesses was 21.88%, also a decrease of 5.3 percentage points.
In several items, there was a decrease in all but a 19 per cent increase in administrative costs. In 2023, Haitian Flavor's net profit attributable to its parent company will decline again, decreasing by 9.2% to 5.63 billion yuan. In 2022, Haitian Flavor's net profit will decrease by 7.1%, which is the company's continuous decline in profit.
According to the profit distribution plan, Haitian Flavor plans to pay a dividend of 0.66 yuan per share, with a total dividend of 3.66 billion yuan, in addition to completing the repurchase amount of 250 million yuan last year, totaling about 3.91 billion yuan, and the cumulative cash dividend ratio of the two is about 70%.
Among the major shareholders, Pang Kang, Cheng Xue and four other natural persons Chen Junyang, Wen Zhizhou, Guan Jianghua and Liao Changhui are acting in concert, Pang Kang directly holds 9.57%, and also indirectly holds 27.8% through Haitian Group, holding a total of about 37.4% of the shares.
Vice Chairman Cheng Xue directly holds 3.17% of the shares, and also holds 9.28% through Haitian Group, with a total of 12.45%.
According to the calculation of the total market value of Haitian Flavor Industry of 216 billion yuan on April 26, the market value of Pang Kang's stock holding is about 80.8 billion yuan. Cheng Xue holds a market value of about 26.9 billion yuan.
As managers, Pang Kang, chairman and president, and Cheng Xue, vice chairman, also received basic salaries of 5.55 million yuan (a decrease of 1.46 million yuan) and 6.7 million yuan (a decrease of 360,000 yuan).
Overall, in 2023, there will be about 7,900 employees in Haitian Flavor, and the average salary of production and sales personnel last year was about 190,000 yuan, a decrease of 5,400 yuan compared with 2022, while the average salary of senior executives was 2.08 million yuan, an increase of about 430,000 yuan.