Key Insights

• Nanjing Sinolife United's Annual General Meeting to take place on 6th of June
• CEO Yuan Zhang's total compensation includes salary of CN¥456.0k
• The overall pay is comparable to the industry average
• Nanjing Sinolife United's EPS grew by 99% over the past three years while total shareholder return over the past three years was 184%

The performance at Nanjing Sinolife United Company Limited (HKG:3332) has been quite strong recently and CEO Yuan Zhang has played a role in it. Shareholders will have this at the front of their minds in the upcoming AGM on 6th of June. This would also be a chance for them to hear the board review the financial results, discuss future company strategy and vote on any resolutions such as executive remuneration. We think the CEO has done a pretty decent job and we discuss why the CEO compensation is appropriate.

How Does Total Compensation For Yuan Zhang Compare With Other Companies In The Industry?

At the time of writing, our data shows that Nanjing Sinolife United Company Limited has a market capitalization of HK$511m, and reported total annual CEO compensation of CN¥2.7m for the year to December 2023. That's a slight decrease of 5.8% on the prior year. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at CN¥456k.

For comparison, other companies in the Hong Kong Personal Products industry with market capitalizations below HK$1.6b, reported a median total CEO compensation of CN¥2.2m. From this we gather that Yuan Zhang is paid around the median for CEOs in the industry. Furthermore, Yuan Zhang directly owns HK$3.7m worth of shares in the company, implying that they are deeply invested in the company's success.

Talking in terms of the industry, salary represented approximately 68% of total compensation out of all the companies we analyzed, while other remuneration made up 32% of the pie. Nanjing Sinolife United sets aside a smaller share of compensation for salary, in comparison to the overall industry. It's important to note that a slant towards non-salary compensation suggests that total pay is tied to the company's performance.

A Look at Nanjing Sinolife United Company Limited's Growth Numbers

Nanjing Sinolife United Company Limited has seen its earnings per share (EPS) increase by 99% a year over the past three years. In the last year, its revenue is up 105%.

Shareholders would be glad to know that the company has improved itself over the last few years. It's great to see that revenue growth is strong, too. These metrics suggest the business is growing strongly. Although we don't have analyst forecasts, you might want to assess this data-rich visualization of earnings, revenue and cash flow.

Has Nanjing Sinolife United Company Limited Been A Good Investment?

Most shareholders would probably be pleased with Nanjing Sinolife United Company Limited for providing a total return of 184% over three years. This strong performance might mean some shareholders don't mind if the CEO were to be paid more than is normal for a company of its size.

To Conclude...

Some shareholders will probably be more lenient on CEO compensation in the upcoming AGM given the pleasing performance of the company recently. However, despite the strong growth in earnings and share price growth, the focus for shareholders would be how the company plans to steer the company towards sustainable profitability in the near future.

While CEO pay is an important factor to be aware of, there are other areas that investors should be mindful of as well. We did our research and spotted 2 warning signs for Nanjing Sinolife United that investors should look into moving forward.

Important note: Nanjing Sinolife United is an exciting stock, but we understand investors may be looking for an unencumbered balance sheet and blockbuster returns. You might find something better in this list of interesting companies with high ROE and low debt.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.