继续停牌 。Gelonghui, December 31 | PUTIAN FOOD (01699.HK) announced that according to the group's unaudited management accounts for 2024, the group's total revenue for 2024 is approximately RMB 0.5 billion, an increase of about 14% compared to RMB 0.439 billion in 2023. The earnings before interest, taxes, and amortization (excluding the debt burden referred to in the statutory demand letter issued by an indirectly controlled subsidiary of Jianyin International Holdings Limited disclosed in the announcement dated May 25, 2023) for 2024 is RMB 26.4 million, a 29% increase from RMB 20.47 million recorded in 2023 (as disclosed on page 21 of the 2023 annual results). This is primarily due to (i) the group's reduction of self-owned Hog Farming and increase in external Hog procurement in 2024, while Hog prices hovered at low levels during the year, leading to higher profits from external Hog slaughtering and sales compared to self-raised Hog slaughtering and sales, indicating that this is the correct Business strategy; (ii) the group's sales model shifted from retail to wholesale, significantly reducing costs such as labor and store rent; (iii) the group's management's continuous and effective strict cost control measures.
Regarding external Hog sale procurement, the company mainly purchases Hogs from government-certified pig farms in Fujian for slaughter at its own slaughterhouse located in Putian, Fujian. After slaughtering, the company primarily sells Pork and related Pork products to Pork wholesalers and retailers in Putian and surrounding areas in Fujian, as well as to certain institutional clients (such as factories) with high demand for Pork. The company also sells its self-branded Pork-related products on third-party online platforms. Under the external Hog procurement, slaughtering, and sales business model, the company is generally able to recover its sales proceeds within three days after paying the procurement amount to the Hog suppliers, so cash flow pressure is relatively much lighter compared to maintaining its own Hog Farming model.
As of the date of this announcement, the company has signed sales contracts with new clients (i.e., clients that did not place orders with the company in 2024) amounting to approximately RMB 0.13 billion for 2025, providing strong support for performance growth in 2025. Looking ahead, the company will continue to actively expand its Business, dynamically adjust its strategy based on changes in Hog market prices, further increase its local market share to drive future performance growth, and create greater value for the company's Shareholders and investors.
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