– Double-Digit Growth in both Revenue and Net Profit
– Proposed Interim Dividend of RMB 0.16 per Share
Weilong Delicious Global Holdings Ltd (WL Delicious or the Company) and together with its subsidiaries (the Group) (Hong Kong HKG: 9985) announced its unaudited interim results for the six months ended 30 June 2024 (the Reporting Period).
In the first half of 2024, against the backdrop of increasing global uncertainties, the Chinese economy maintained a robust growth momentum. Benefiting from the growing consumption willingness of young consumer groups led by Generation Z, the casual snack food industry has exhibited strong growth prospects. During the Reporting Period, WL Delicious seized the structural opportunities in the snack food sector brought by diversified mainstream consumption concepts, adhering to the strategy of “multiple categories and large single product”. The Company continuously upgraded its research and development capabilities, actively engaged in integrated online and offline marketing activities to enhance brand influence, and vigorously implemented its omni-channel strategy to provide consumers with a more satisfying, convenient, and superior consumption experience.
During the Reporting Period, WL Delicious’s operational strategy yielded significant results, with performance continuously improving and achieving double-digit growth in both revenue and net profit. In the first half of 2024, the Group’s total revenue reached approximately RMB 2,939 million, representing a year-on-year growth of 26.3%. This growth was primarily attributed to the effective implementation of the Group’s business development strategies during the Reporting Period, particularly the active promotion of omni-channel construction and brand investment and brand building, resulting in the steady increase in both online and offline revenues. Benefiting from an increase in utilization rate and a decrease in the prices of certain raw materials during the Reporting Period, the Group recorded a gross profit of approximately RMB 1,462 million, marking a 32.2% year-on-year increase. The gross profit margin increased by 2.3 percentage points from the same period last year to 49.8%. The Group’s net profit surged by 38.9% year-on-year to around RMB 621 million. Driven by the improvements in revenue and gross margin, the net profit margin increased by 1.9 percentage points from the same period last year to 21.1%.
Based on the overall performance during the Reporting Period, the Board of Directors decided to declare an Interim Dividend of RMB 0.16 per share (inclusive of tax for 2024, amounting to a total Interim Dividend of approximately RMB376.2 million), representing approximately 60% of the net profit of the Group for the six months ended June 30, 2024. The expected dividend payment date is on or about October 18, 2024.
In terms of products, the Group adhered to its consumer-centric approach andmaintained the strategy of “multiple categories and large single product”. It actively enhanced its research and development capabilities, continuously explored the changing consumption preferences of young consumer groups, and successively launched products such as spicy barbecue-flavored konjac vegetarian tendon “XIAO MO NV”, hot and sour hotpot-flavored vegetarian tripe “XIAO MO NV”, and lime-flavored crisp Latiao “CUI HUO HUO”, expanding its product portfolio to meet the diverse and personalized consumer demands.
In terms of brand development, the Group continued to strengthen its branding efforts. It actively engaged in integrated online and offline branding and marketing activities to enhance interaction with consumers and boost brand influence. Activities including brand promotion of the core large product “Konjac Shuang,” IP animated videos for the ” XIAO MO NV”, “Durian Latiao” pop-up stores, and collaborative marketing events like the ” Eggy Party” were organised. The Group has been actively creating a distinct path towards brand rejuvenation, aiming to continuously increase brand vitality and appeal. This makes the brand more aligned with the lifestyle and consumption habits of young consumer groups.
Regarding distribution channels, the Group actively implemented its omni-channel strategy. While consolidating its presence in traditional snack distribution channels, it was also seizing growth opportunities brought by emerging channels such as O2O, content e-commerce platforms, snack specialty retailers, and warehouse clubs. During the Reporting Period, the Group deepened its online and offline omni-channel development, establishing closer connections with consumers and providing a more convenient consumption experience.
Mr. Liu Weiping, Chairman of WL Delicious, stated: “As a pioneer and leader in the Chinese spicy snack food industry, the Group remains committed to embracing the diverse changes in consumer preferences with a more proactive and open mindset. We actively strengthen our product category and product innovation, promote youthful and diverse development of our brand, seize the opportunities brought by the emerging channels while reinforcing traditional channels, firmly advocate for product innovation and omni-channel development, and remain focused on enhancing the quality and efficiency of our supply chain. We are dedicated to continuously establishing ourselves as a leading provider of value-driven spicy snack foods for consumers. The Group will continue to stay true to our original aspirations, remember our mission, and strive to deliver the maximum value and return to consumers, customers, shareholders, investors, employees, and society.”
RMB
For the 6 months ended 30 June
Change
2024
2023
Revenue
2,939 million
2,327 million
+26.3%
Gross Profit
1,462 million
1,106 million
+32.2%
Gross Profit Margin
49.8%
47.5%
+2.3p.p.
Net Profit
621 million
447 million
+38.9%
Net Profit Margin
21.1%
19.2%
+1.9p.p.
Basic Earnings Per Share
0.27
0.19
+42.1%
Interim Dividend
0.16 / ordinary share
0.12 / ordinary share
+33.3%
– Ends –
About Weilong Delicious Global Holdings Ltd
WEILONG Delicious Global Holdings Limited (WL Delicious) is an all-in-one spicy snack products enterprise, leading in the research and development, production, and sales of spicy snack foods in China. Based on traditional formulas, WL Delicious started the Chinese seasoned flour products (also commonly known as Latiao industry, created our first Latiao snack in 2001, leading the standards construction of Latiao industry. With our outstanding product development capabilities, the Group has successfully diversified into vegetable products, bean-based products and others, including Konjac Shuang, Fengchi Kelp, Soft-boiled egg and others. The Group has further launched new products like spicy Latiao, konjac vegetarian tripe “XIAO MO NV” and spicy crisp Latiao “CUI HUO HUO”, which are quite popular among consumers. WL Delicious is a popular snack food brand among young consumers in China. It has an omni-channel sales and distribution network that effectively reaches young consumers. In 2024, we have won the FBIF WOW Food Award “Best Snack Award” ( FBIF WOW and “Hurun Top 100 National Brands” award.
For more information, please visit https://www.weilongshipin.com/.