According to Caixin, on August 19th, Anjoy Foods Group (603345.SH) achieved double-digit growth in both revenue and net income in the first half of this year, but both growth rates fell to single digits. Previously, from 2018-2023, the company's semi-annual reports were double-digit growth in both revenue and net income.

The company announced tonight that it achieved operating income of 7.544 billion yuan in the first half of this year, a year-on-year increase of 9.42%, and a net profit attributable to the shareholders of the listed company of 0.803 billion yuan, a year-on-year growth of 9.17%. The net profit of the second quarter, which dragged down the company's performance, was 0.364 billion yuan, a year-on-year decrease of 2.51%.

Anjoy Foods Group is mainly engaged in research and development, production and sales of frozen foods, with its main products including frozen formulated food, frozen noodles and rice products, and frozen pre-cooked dishes. During the reporting period, the revenues of the aforementioned main products increased by 21.86%, 1.37%, and 0.4% respectively, compared to the same period last year. In the first half of 2023, the revenues of frozen noodles and rice products and frozen pre-cooked dishes increased by 11.07% and 58.19% respectively, while the revenues of frozen fish paste products and frozen meat products increased by 20.79% and 22.47% respectively among frozen formulated food products.

Compared to the growth rates of its main products in 2023, in the first half of this year, although frozen formulated food, which accounted for 50.81% of the revenue, maintained its normal growth rate, the revenue growth rates of frozen pre-cooked dishes, accounting for 29.27% of the revenue, and frozen noodle and rice products, accounting for 17.12% of the revenue, both declined significantly.

As for construction projects, as of the end of the reporting period, the company has ongoing projects including Shandong Anjoy's newly-built 0.2 million ton/year capacity frozen food project, Taizhou's third-phase 0.1 million ton/year capacity frozen food expansion project, Guangdong Anjoy's newly-built 0.133 million ton/year capacity frozen food project, Henan's third-phase 0.14 million ton/year capacity frozen food expansion project, and Liaoning's third-phase 0.14 million ton/year capacity frozen food expansion project.

From the perspective of sales channels, the company's main sales model is still based on its dealer model, with a 12.42% year-on-year increase in revenue in the first half of this year. The total number of dealers at the end of the reporting period was 2060, an increase of 96 compared to the beginning of the period. In addition, the revenue from new retail and e-commerce increased by 27.32% and 7.28% respectively, while the revenue from TETONG direct sales (chain catering, hotels, group purchases, etc.) and supermarkets decreased by 15.27% and 3.03% respectively.

According to the financial report, Anjoy Foods Group further clarified its focus on expanding new marketing channels this year, proactively embracing large B (medium and large catering chains + platform customization customers), and accelerating cooperation on customized business with local chain catering systems and others.

During the reporting period, the company's sales expenses and administrative expenses increased by 11.01% and 41.84% respectively year-on-year, while its research and development expenses increased by 13.53% year-on-year.

In terms of brand operation, the company stated that in recent years, it has rapidly formed a "1+5" brand matrix through establishing independent business units and mergers and acquisitions: "1" refers to the main brand Anjoy, and "5" refers to Anjoy Foods Group's subsidiary brands, including Anjoy Little Kitchen, Mr. Frozen Food, Honghu Temptations, Liuwu, and Anzai.