Guoquan: Continuously Expanding the Business Scale While Enhancing Profitability

Mar 30, 2024 | Business

HONG KONG, Mar 29, 2024 – (ACN Newswire) – Guoquan Food (Shanghai) Co., Ltd. (“Guoquan” or “the Company”; Stock Code: 2517.HK) is pleased to announce the consolidated results of the Company and its subsidiaries for the year ended December 31, 2023 (the “Reporting Period”).

In 2023, the Chinese economy showed a sustained recovery and steady improvement. Despite the challenges, which posed threats to consumer-oriented enterprises, Guoquan responded by effectively managing the supply chain and enhancing operational efficiency, thereby bolstering the profitability. During the Reporting Period, Guoquan recorded the revenue of RMB6,094.1 million, the gross profit of approximately RMB1,350.9 million, reflecting an 8.2% year-on-year growth, and the gross profit margin of approximately 22.2%, improving 4.8 percentage points from 17.4% in the same period of 2022. Furthermore, Guoquan achieved the net profit of approximately RMB263.4 million, representing an increase of 9.3% compared to the same period in 2022. The adjusted net profit reached approximately RMB318.0 million, marking a year-on-year increase of 23.8%. Besides, the operating cash flow represents a year-on-year increase of 137.7% to reach RMB678.3 million.

On November 2, 2023, Guoquan was listed on the Main Board of the Hong Kong Stock Exchange, marking a new milestone in the development. Starting from March 4, 2024, Guoquan officially accessed to the Hong Kong Stock Connect, which is expected to enhance the liquidity of the Company’s stock and gradually highlight its investment value. Additionally, to better reward shareholders, the board of directors proposed the payment of final cash dividend of RMB 0.0521 per share (inclusive of tax), with an estimated total distribution of RMB 143 million, demonstrating Guoquan’s emphasis on shareholder interests.

Expansion of offline stores and acceleration of online channels

In terms of channels, Guoquan has established a nationwide store network to occupy market share. During the Reporting Period, Guoquan’s store network expanded despite the sluggish consumption trend. As of the end of 2023, Guoquan had 10,307 retail stores, covering 31 provinces, autonomous regions, and municipalities, a net increase of 1,086 in the number of stores compared to the end of 2022, further expanding the market influence.

Meanwhile, to empower franchisees and facilitate the sales growth as well as further our consumer reach and offer more flexible shopping experience, we have established multiple online channels, including Guoquan APP, WeChat mini-program, third-party food delivery platforms, Douyin and other popular social commerce platforms. In 2023, through multi-level Douyin accounts for live streaming of Guoquan products or posting related short videos, the total views exceeded 6 billion times.

By establishing close online and offline connections and interactions with consumers, Guoquan achieved a record high number of members, with the top-up amount increasing by 18% annually to approximately RMB720 million. As of the end of 2023, Guoquan had approximately 27.9 million registered members.

Continuous Enrichment of product matrix and digital intelligence driving product innovation

Guoquan has provided offered diversified, tasty, convenient and affordable home meal products in a one-stop shop manner for consumers across a wide range of dining scenarios. With deep consumer insights and R&D efforts, Guoquan has collaborated closely with suppliers and R&D centers to consistently improve its range of products to align with evolving consumer demands and preferences.

In regards to product development, Guoquan leveraged digital tools to analyze consumer behavior, gained in-depth insights into consumers, accurately assessed market trends, and launched new products and upgraded existing ones accordingly. Guoquan also regularly introduced products tailored to local markets to cater to different consumer preferences across regions. In 2023, Guoquan successfully launched a total of 339 new SKUs.

As of December 31, 2023, Guoquan’s product portfolio comprises eight categories including hotpot products, barbecue products, beverages, solo-dining meals, ready-to-cook meal kits, fresh produce, western cuisines and snacks, covering diverse dining needs of consumers comprehensively.

In 2023, the gross profit margin of Guoquan was approximately 22.2%, representing an increase of 4.8 percentage points as compared to 17.4% in the corresponding period in 2022. This improvement was mainly attributable to better cost control resulting from Guoquan’s advantageous scale, along with the development of new products, upgrading of existing products, and the increased proportion of self-production following the acquisition of factories.

Steadily advancing the “three-sphere integrated” development strategy to solidify market leadership

Looking ahead, Guoquan will maintain its commitment to the three-sphere integrated development strategy encompassing brand, product, and channel. This includes expanding product categories, strengthening omni-channel sales network, increasing investments in brand building and marketing, and exploring consumer scenarios to improve consumer value and further solidify the market leadership. Furthermore, Guoquan aims to leverage digital tools to empower both upstream supply chain and downstream franchisees, with the goal of tasty, convenient and affordable home meal products to a diverse consumer base across various channels and scenarios.

Specifically, in terms of channel construction, Guoquan will continue to expand and deepen our omni-channel sales network to further our direct reach to consumers. Strengthen the depth and breadth of the offline store network by deepening offline market penetration in regions already covered, expanding the store network to new regions and by various store types. Further develop our online sales platforms to realize mutual empowerment of offline and online, driving the increase of sales revenue. Moreover, Guoquan will continue to cultivate more entrepreneurial franchisees by encouraging our existing franchisees to open more franchised stores, and propel their sales growth and cultivate entrepreneurial franchisees by continuously expanding to more product categories, upgrading our product portfolio, and developing more online leads.

Guoquan have created a diversified product portfolio in terms of both product categories as well as the consumption scenarios it serves, and in the future, Guoquan will continue to explore campsite dining as a new consumption scenario, explore sales channels for enterprise customers and strengthen the regionalised supply chain of home meal products, so as to provide a wider range of regionalised meal products to cater to consumer needs.

In terms of products, Guoquan will continue to enhance our R&D capability and continue to collaborate with upstream suppliers to improve our R&D and innovation capability. Meanwhile, further integrate Guoquan’s upstream resources and source quality food ingredients through investment in or partnerships with selective and qualified Chinese and overseas food suppliers who have market potential and can achieve synergy with Guoquan, so as to reinforce Guoquan’s core competitive edges.

In terms of digitization, Guoquan will continue to enhance digitization by further improving its procurement and fulfilment management platforms and promoting the development of its membership system, with a view to improving its overall operational efficiency and boosting the growth of sales revenue.

In terms of brand building, Guoquan will increase its investment in brand building and marketing by stepping up its marketing efforts in high-profile TV advertisement, offline advertisement, community group buy and social e-commerce platforms in order to further deepen consumer reach and raise consumer stickiness, thereby elevating brand recognition, brand awareness, brand reputation and consumer loyalty.


Topic: Press release summary

Sectors: Food & Beverage

http://www.acnnewswire.com

From the Asia Corporate News Network

Copyright © 2024 ACN Newswire. All rights reserved. A division of Asia Corporate News Network.

Hitachi Continuously Selected as CDP Supplier Engagement Leader

Mar 28, 2023 | Business

Hitachi, Ltd. (TSE: 6501) has been selected as a Supplier Engagement Leader, with the highest rating of “Supplier Engagement Rating” in 2022 by CDP, an international non-governmental organization in the environmental field. Hitachi has been continuously recognized as a Supplier Engagement Leader(1) for its efforts to achieve a net-zero society, including reductions in CO2 emissions throughout its value chain.

In 2022, Hitachi was selected as a CDP A list company(2) (the highest rating) in the areas of “Climate Change” and “Water Security.” In addition to that, Hitachi has also received the highest rating for supplier engagement.

The CDP’s-“Supplier Engagement Rating” evaluates corporate activities within supply chains regarding climate change and selects companies with especially excellent activities for its “Supplier Engagement Leader”. In 2022, the “Supplier Engagement Leader” includes the top 8% of companies that CDP evaluated.

Hitachi has established long-term environmental targets as “Hitachi Environmental Innovation 2050,” with the goal of the establishment of a sustainable society. Hitachi has been promoting sustainable management and working specifically to achieve the carbon neutrality of its business sites (factories and offices) by FY2030 and its entire value chain by FY2050. To achieve carbon neutrality throughout its value chain and develop sustainability-minded business activities that lead to the prosperity of both the Hitachi Group and its procurement partners(3), we have distributed the Hitachi Group Sustainable Procurement Guidelines(4) to around 30,000 procurement partners and held sustainable procurement seminars for them.

(1) News release dated February 10, 2022: Hitachi Recognized as Supplier Engagement Leader, the Highest Rating in the CDP’s Supplier Engagement Rating www.hitachi.com/New/cnews/month/2022/02/220210a.html
(2) News release dated December 13, 2022: Hitachi Recognized with Double ‘A List’ on Climate Change and Water Security for the Second Consecutive Year www.hitachi.com/New/cnews/month/2022/12/221213a.html
(3) Hitachi normally refers to its suppliers (including vendors or providers) as “procurement partners” who build business together on an equal footing
(4) Hitachi Group Sustainable Procurement Guidelines www.hitachi.com/procurement/csr/sustainable-procurement-guidelines/

Going forward, as a climate change innovator, Hitachi will solve various challenges including ESG issues faced by our customers and society and contribute to realize a sustainable society where people live happily in prosperity through its Social Innovation Business leveraging data and technology.

Hitachi Sustainability Report 2022
www.hitachi.com/sustainability/download/

Hitachi Integrated Report 2022
www.hitachi.com/IR-e/library/integrated/

Hitachi’s Sustainability Initiatives
www.hitachi.com/sustainability/

Hitachi’s Sustainable Procurement
www.hitachi.com/procurement/csr/

Hitachi’s Environmental Activities
www.hitachi.com/environment/

About CDP
www.cdp.net/en

About Hitachi, Ltd.

Hitachi drives Social Innovation Business, creating a sustainable society with data and technology. We will solve customers’ and society’s challenges with Lumada solutions leveraging IT, OT (Operational Technology) and products, under the business structure of Digital Systems & Services, Green Energy & Mobility, Connective Industries and Automotive Systems. Driven by green, digital, and innovation, we aim for growth through collaboration with our customers. The company’s consolidated revenues for fiscal year 2021 (ended March 31, 2022) totaled 10,264.6 billion yen ($84,136 million USD), with 853 consolidated subsidiaries and approximately 370,000 employees worldwide. For more information on Hitachi, please visit the company’s website at www.hitachi.com.


Topic: Press release summary

Hong Kong – FEHD continuously improves service level of public toilets through application of technology

Nov 17, 2021 | International

FEHD continuously improves service level of public toilets through application of technology

******************************************************************************************


     A spokesman for the Food and Environmental Hygiene Department (FEHD) said today (November 17) that the FEHD will continue to proactively take forward the Enhanced Public Toilet Refurbishment Programme to improve the design and facilities of public toilets (PTs), as well as enhance the service level of PTs in a persistent manner by utilising technology. The FEHD has been piloting the Smart Public Toilet System (SPTS) in some PTs and mapping out a blueprint for ideal and modernised PTs through a design thinking programme and PT design competition co-organised with the Architectural Services Department (ArchSD). 

     The FEHD currently manages some 810 PTs open round the clock. “Adopting a multi-pronged approach, the department is committed to improving PT facilities and monitoring their operation and performance as well as enhancing public education, with a view to upgrading the overall hygiene and service level of PTs. Under the Enhanced Public Toilet Refurbishment Programme, 240 PTs under the FEHD’s management will undergo refurbishment or facelifting works in phases from 2019-20 to 2023-24, of which works for 91 PTs have already been commenced or completed in the first two years whilst the remainder are also being handled as scheduled,” the spokesman said.

     Among PTs that have completed facelifting works this year, the Design for Manufacture and Assembly concept has been applied to some of them (such as Wing Lok Street PT in Central and Western District). This has not only shortened construction time as well as the time required for suspension of services and minimised the impact on users by using prefabricated components, but also allows better quality control and facilitates future repair and maintenance. The FEHD is, with ArchSD, actively exploring the piloting of application of such technologies and modular integrated construction at improvement projects of PTs and new PT projects to expedite the progress of improvement works, especially for those situated in rural areas. In addition, wheelchair user-friendly facilities and toilet cubicles with baby rests have been installed in Sai Yee Street Garden PT in Mong Kok District and Hoi Hing Road PT in Tsuen Wan District respectively. When refurbishing public toilets, the FEHD will provide attendant rooms for toilet attendants as far as practicable (e.g. Exchange Square PT in Central and Western District and Moreton Terrance PT in Wan Chai District), or provide facilities such as wall-mounted fans, exhaust fans, propulsion fans, power sockets, lockers, rest places and changing facilities at the in-service PTs with attendant rooms to improve the working environment of toilet attendants.

     The FEHD has introduced and piloted the SPTS in Tsim Sha Tsui East Public Transport Interchange Public Toilet and Southorn Centre Public Toilet in Wan Chai through the application of Internet of Things (IoT) solutions on a one-year basis since this May. The system will collect information and data to improve the management, service quality and user experience of PTs.

     The FEHD is also working with the Electrical and Mechanical Services Department by making use of the Government-Wide IoT Network to launch a Smart Toilet Pilot Programme. Relevant devices will be successively installed at 10 FEHD PTs from the third quarter of this year onwards to collect various data related to PT operation, including PT usage, environmental parameters (such as temperature, humidity and odour), usage of consumables (such as soap, toilet paper, toilet seat sanitiser and hand sanitiser), the operating status of electrical and mechanical equipment (including hand dryers and floor fans) and user feedback.

     By developing a pilot scheme on the SPTS, the FEHD aims to study, develop and construct an SPTS prototype that can enhance the management and service quality of PTs. The scheme collects PT operation data in order to monitor facilities’ daily operation, improve their service quality and enhance their management. It also provides information for the enhancement of PT construction and refurbishment projects that can meet public needs in a more appropriate manner. The FEHD will, based on the effectiveness of the SPTS pilot scheme, consider applying the system to other PTs to enhance the overall quality of management and services of PTs.

     To gauge views from stakeholders with innovative design ideas for the construction of PTs with high levels of buildability and cost-effectiveness, the FEHD and ArchSD co-organised the Toilet Tells: Rediscover Public Toilet design thinking workshops and the PT 2.0 Public Toilet Design Competition, and the programme and events are all completed. The two departments are now studying the implementation of innovative ideas for the service, design and management of PTs where practicable and also considering application of the design concepts of the winning entries in PT projects as appropriate. 

     Furthermore, the FEHD has all along been disseminating messages on the proper use of PT facilities through various means, including making use of the Facebook and Instagram pages of Keep Clean Ambassador Ah Tak, broadcasting systems at PTs, publicity stickers and a thematic webpage.

     “The department will strive to enhance the overall service level of PTs through improvement and management measures on various fronts, combining application of technology and innovative ideas, as well as full co-operation with relevant departments,” the spokesman said. He also appealed to members of the public to take good care of public facilities and keep PTs clean and hygienic.