Wing Yip Food Holdings Group Limited Announces Fiscal Year 2024 Financial Results
- Revenue growth of 7.88% YoY to $144.63M
- Strong performance in snack products segment with 15.83% revenue increase
- Successful launch of 81 new products, including 35 snack items
- Establishment of quality testing center for improved risk detection
- Completed IPO raising $9.43M in gross proceeds
- Healthy cash position with $87.93M in cash and cash equivalents
- Net income declined 19.7% to $11.25M from $14.01M
- Gross profit margin decreased to 30.97% from 35.13%
- Operating expenses increased 4.12% to $29.03M
- Average unit sales prices decreased across all product categories
- Cash from operating activities decreased to $12.48M from $17.65M
Insights
Wing Yip reported 7.88% revenue growth but declining profitability with margin compression from 35.13% to 30.97% amid pricing challenges across product categories.
Wing Yip Food Holdings Group Limited's fiscal year 2024 results reveal a fundamental disconnect between revenue growth and profitability. While the company achieved
The margin deterioration is striking – gross profit declined to
Examining segment performance reveals divergent trends. Snack products emerged as the growth driver, increasing
The strategic focus on product innovation appears well-directed, with 81 new products introduced, including 35 snack items targeting younger consumers. R&D investment increased
The company's balance sheet remains solid with
The establishment of a quality testing center represents a potential operational advantage and future revenue opportunity, though its near-term financial impact remains to be seen.
Wing Yip's strategic pivot toward snack products is gaining traction with 15.83% segment growth, though margin compression across all categories presents challenges.
Wing Yip's FY2024 results highlight a strategic shift in China's competitive meat processing landscape. The company is executing a product diversification strategy centered on convenience and youth appeal, evidenced by the introduction of 81 new products, with 35 specifically targeting younger consumers.
The
However, the pricing environment remains challenging across all segments. Average unit prices declined across the board: cured meat products (-
The company's increasing focus on direct-to-consumer channels (mentioned as drivers of snack and frozen meat sales growth) represents an attempt to capture more margin while building brand loyalty. The
The April 2024 establishment of a quality testing center addresses food safety concerns that remain paramount for Chinese consumers following historical industry incidents. The dual purpose of this facility – internal quality assurance and potential external services – reflects both operational necessity and business opportunity.
Wing Yip's positioning in convenience-oriented meat snacks aligns with evolving Chinese consumer preferences for on-the-go protein consumption, particularly among younger demographics. However, the margin compression across all segments indicates that product innovation alone may not be sufficient without addressing broader pricing and cost management challenges.
ZHONGSHAN,
Ms. Tingfeng Wang, Chief Executive Officer of Wing Yip, remarked, "We are pleased to share our performance for fiscal year 2024, during which we achieved a
Ms. Wang continued, "By strengthening our product offerings and enhancing quality assurance, we believe we are set to capture emerging opportunities and reinforce our leadership in
Fiscal Year 2024 Financial Summary
- Net revenues were
$144.63 million 7.88% from$134.07 million - Gross profit was
$44.80 million $47.10 million - Gross profit margin was
30.97% in fiscal year 2024, compared to35.13% in fiscal year 2023. - Net income was
$11.25 million $14.01 million - Basic and diluted earnings per share were
$0.23 $0.29
Fiscal Year 2024 Financial Results
Net Revenues
Net revenues were
- Revenue from sales of cured meat products was
$86.02 million $83.28 million $14.57 million RMB7.0809 to$1.00 $1.00 $1.39 million $8.00 $6.79 $10.44 million - Revenue from sales of snack products was
$50.54 million 15.83% from$43.64 million $8.13 million RMB7.0809 to$1.00 $1.00 $0.81 million $7.94 $7.48 $0.41 million - Revenue from sales of frozen meat products was
$8.07 million 12.78% from$7.16 million $1.48 million RMB7.0809 to$1.00 $1.00 $0.13 million $4.95 $4.47 $0.44 million
Cost of Revenues
Cost of revenues were
Gross Profit and Gross Profit Margin
Gross profit was
Gross profit margin was
Operating Expenses
Total operating expenses were
- Selling expenses were
$19.67 million 0.62% from$19.55 million $0.11 million - General and administrative expenses were
$4.38 million 7.45% from$4.08 million - Research and development expenses were
$4.97 million 17.01% from$4.25 million $0.69 million
Net Income
Net income was
Basic and Diluted Earnings per Share
Basic and diluted earnings per share were
Financial Condition
As of December 31, 2024, the Company had cash and cash equivalents of
Net cash provided by operating activities was
Net cash used in investing activities was
Net cash provided by financing activities was
Recent Development
On November 27, 2024, the Company completed its initial public offering (the "Offering") of 2,050,000 American Depositary Shares ("ADSs") at a public offering price of
About Wing Yip Food Holdings Group Limited
Wing Yip, is a meat product processing company operating through its subsidiaries in mainland
For more information, please visit the Company's website: http://ir.wingyip-food.com/. Information on the Company's website does not constitute a part of and is not incorporated by reference into this press release.
Forward-Looking Statements
Certain statements in this announcement are forward-looking statements. These forward-looking statements involve known and unknown risks and uncertainties and are based on the Company's current expectations and projections about future events that the Company believes may affect its financial condition, results of operations, business strategy and financial needs. Investors can identify these forward-looking statements by words or phrases such as "may," "will," "expect," "anticipate," "aim," "estimate," "intend," "plan," "believe," "is/are likely to," "potential," "continue" or other similar expressions. The Company undertakes no obligation to update or revise publicly any forward-looking statements to reflect subsequent occurring events or circumstances, or changes in its expectations that arise after the date hereof, except as may be required by law. These statements are subject to uncertainties and risks, including, but not limited to, the uncertainties related to market conditions, and other factors discussed in the "Risk Factors" section of the registration statement and other filings of the Company filed with the
For more information, please contact:
Wing Yip Food Holdings Group Limited
Investor Relations Department
Email:ir@wingyip-food.com
Ascent Investor Relations LLC
Tina Xiao
Phone: +1-646-932-7242
Email: investors@ascent-ir.com
WING YIP FOOD HOLDINGS GROUP LIMITED AND ITS SUBSIDIARIES | ||||||||
CONSOLIDATED BALANCE SHEETS | ||||||||
(Expressed in U.S. Dollars, except for the number of shares) | ||||||||
As of | As of | |||||||
ASSETS | ||||||||
CURRENT ASSETS: | ||||||||
Cash and cash equivalents | $ | 87,927,726 | $ | 90,963,594 | ||||
Restricted cash | 880,358 | - | ||||||
Accounts receivable, net | 7,768,381 | 7,347,892 | ||||||
Inventories | 8,456,295 | 6,576,151 | ||||||
Prepaid expenses and other current assets | 7,779,378 | 3,922,368 | ||||||
TOTAL CURRENT ASSETS | $ | 112,812,138 | $ | 108,810,005 | ||||
NON-CURRENT ASSETS: | ||||||||
Property, plant and equipment, net | $ | 79,568,773 | $ | 70,510,340 | ||||
Intangible assets, net | 47,094 | 56,069 | ||||||
Land-use rights, net | 605,343 | 650,187 | ||||||
Right-of-use assets | 300,664 | 215,392 | ||||||
Deferred offering costs | - | 605,866 | ||||||
Other non-current assets | 157,076 | 174,317 | ||||||
TOTAL NON-CURRENT ASSETS | $ | 80,678,950 | $ | 72,212,171 | ||||
TOTAL ASSETS | $ | 193,491,088 | $ | 181,022,176 | ||||
LIABILITIES | ||||||||
CURRENT LIABILITIES: | ||||||||
Short-term loans | $ | 6,712,972 | $ | 6,478,964 | ||||
Long-term loans | 10,506,144 | 781,701 | ||||||
Accounts payable | 8,095,509 | 7,786,391 | ||||||
Notes payable | 2,934,527 | - | ||||||
Deferred income | 46,874 | 65,495 | ||||||
Accrued expenses and other payables | 3,195,138 | 3,433,862 | ||||||
Taxes payable | 3,603 | 857,512 | ||||||
Lease liabilities | 87,648 | 41,985 | ||||||
TOTAL CURRENT LIABILITIES | $ | 31,582,415 | $ | 19,445,910 | ||||
NON-CURRENT LIABILITIES: | ||||||||
Long-term loans | $ | 4,335,336 | $ | 16,726,570 | ||||
Lease liabilities | 278,282 | 212,615 | ||||||
Deferred tax liabilities | 1,550,063 | 1,580,428 | ||||||
TOTAL NON-CURRENT LIABILITIES | $ | 6,163,681 | $ | 18,519,613 | ||||
TOTAL LIABILITIES | $ | 37,746,096 | $ | 37,965,523 | ||||
COMMITMENTS AND CONTINGENCIES (NOTE 19) | — | — | ||||||
SHAREHOLDERS' EQUITY | ||||||||
Ordinary shares (No par value; 50,023,428 and 47,973,428 shares issued and | $ | - | $ | - | ||||
Additional paid-in capital | 42,997,303 | 37,370,297 | ||||||
Statutory reserve | 12,087,066 | 10,435,949 | ||||||
Accumulated other comprehensive loss | (9,307,406) | (5,119,036) | ||||||
Retained earnings | 109,968,029 | 100,369,443 | ||||||
TOTAL SHAREHOLDERS' EQUITY | $ | 155,744,992 | $ | 143,056,653 | ||||
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | $ | 193,491,088 | $ | 181,022,176 | ||||
WING YIP FOOD HOLDINGS GROUP LIMITED AND ITS SUBSIDIARIES | ||||||||||||
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME | ||||||||||||
(Expressed in U.S. Dollars, except for the number of shares) | ||||||||||||
Years ended December 31, | ||||||||||||
2024 | 2023 | 2022 | ||||||||||
Revenues | 144,629,055 | 134,068,317 | 130,789,405 | |||||||||
Cost of revenues | (99,833,630) | (86,972,132) | (86,444,589) | |||||||||
Gross profit | 44,795,425 | 47,096,185 | 44,344,816 | |||||||||
Operating expenses: | ||||||||||||
Selling expenses | (19,672,532) | (19,550,604) | (19,691,729) | |||||||||
General and administrative expenses | (4,379,642) | (4,075,896) | (4,006,282) | |||||||||
Research and development expenses | (4,973,452) | (4,250,451) | (4,105,172) | |||||||||
Total operating expenses | (29,025,626) | (27,876,951) | (27,803,183) | |||||||||
Other income (expenses): | ||||||||||||
Interest income | 179,412 | 178,758 | 244,416 | |||||||||
Interest expenses | (1,064,745) | (995,345) | (83,516) | |||||||||
Other income, net | 58,766 | 208,908 | 122,240 | |||||||||
Other expense, net | (2,839,598) | (2,111,109) | (1,762,251) | |||||||||
Exchange loss | (3,298) | (11,651) | (55,654) | |||||||||
Total other expenses, net | (3,669,463) | (2,730,439) | (1,534,765) | |||||||||
Income before income tax | 12,100,336 | 16,488,795 | 15,006,868 | |||||||||
Income tax expenses | (850,633) | (2,478,882) | (3,812,884) | |||||||||
Net income | 11,249,703 | 14,009,913 | 11,193,984 | |||||||||
Comprehensive income | ||||||||||||
Net income | ||||||||||||
Foreign currency translation adjustments, net of tax | 4,188,370 | 3,831,082 | 10,312,615 | |||||||||
Comprehensive income | 15,438,073 | 17,840,995 | 21,506,599 | |||||||||
Earnings per share, basic and diluted | 0.23 | 0.29 | 0.23 | |||||||||
Weighted average number of shares | 48,175,620 | 47,973,428 | 47,973,428 | |||||||||
WING YIP FOOD HOLDINGS GROUP LIMITED AND ITS SUBSIDIARIES | ||||||||||||
CONSOLIDATED STATEMENTS OF CASH FLOWS | ||||||||||||
(Expressed in U.S. Dollars, except for the number of shares) | ||||||||||||
For the years ended | ||||||||||||
2024 | 2023 | 2022 | ||||||||||
Cash flows from operating activities: | ||||||||||||
Net income | $ | 11,249,703 | $ | 14,009,913 | $ | 11,193,984 | ||||||
Adjustments to reconcile net income (loss) to net cash used in | ||||||||||||
Depreciation of property, plant and equipment | 4,418,774 | 3,016,946 | 1,347,274 | |||||||||
Written off property, plant and equipment | 614,527 | 2,007,477 | 1,668,442 | |||||||||
Allowance for credit losses | (43,797) | 18,630 | (8,374) | |||||||||
Amortization of intangible assets | 9,003 | 7,402 | 6,995 | |||||||||
Amortization of land use right | 27,472 | 22,933 | 16,863 | |||||||||
Amortization of right-of-use asset | 91,368 | 134,971 | 649,362 | |||||||||
Deferred income taxes | (30,365) | (43,378) | (27,160) | |||||||||
Changes in operating assets and liabilities: | ||||||||||||
Accounts receivable | (376,692) | (3,310,188) | (2,233,756) | |||||||||
Inventories | (1,880,144) | 1,152,696 | (1,813,479) | |||||||||
Prepaid expenses and other current assets | (3,857,006) | 1,139,213 | (724,326) | |||||||||
Other non-current assets | 17,241 | 30,893 | 16,045 | |||||||||
Accounts payable | 309,118 | 671,155 | (6,041,247) | |||||||||
Notes Payable | 2,934,530 | - | - | |||||||||
Deferred revenue | (18,621) | (19,737) | (26,296) | |||||||||
Taxes payable | (853,909) | (859,792) | (1,422,488) | |||||||||
Lease liabilities | 111,330 | (124,456) | (678,659) | |||||||||
Accrued expenses and other payables | (238,724) | (203,052) | (312,809) | |||||||||
Net cash provided by operating activities | 12,483,808 | 17,651,626 | 8,922,859 | |||||||||
Cash flows from investing activities: | ||||||||||||
Purchase of property, plant and equipment | (10,102,478) | (217,053) | (18,056,679) | |||||||||
Purchase of intangible assets | (548) | (5,113) | — | |||||||||
Net cash used in investing activities | (10,103,026) | (222,166) | (18,056,679) | |||||||||
Cash flows from financing activities: | ||||||||||||
Issuance of ordinary shares, net of offering costs | 6,232,872 | - | - | |||||||||
Proceeds from short-term loans | 7,123,971 | 6,478,964 | 9,961,845 | |||||||||
Proceeds from long-term loans | 650,747 | 4,647,953 | 11,598,910 | |||||||||
Repayment of short-term loans | (6,712,972) | (3,802,870) | (15,727,397) | |||||||||
Repayment of long-term loans | (2,880,120) | (591,558) | - | |||||||||
Deferred offering costs | - | (605,866) | - | |||||||||
Net cash provided by financing activities | 4,414,498 | 6,126,623 | 5,833,358 | |||||||||
Effect of exchange rate changes | (8,950,790) | 13,817 | (6,070,232) | |||||||||
Net increase (decrease) in cash | (2,155,510) | 23,569,900 | (9,370,694) | |||||||||
Cash and cash equivalents at beginning of the year | 90,963,594 | 67,393,694 | 76,764,388 | |||||||||
Cash and cash equivalents at end of the year | 88,808,084 | 90,963,594 | 67,393,694 | |||||||||
Supplemental disclosures of cash flows information: | ||||||||||||
Cash paid for income taxes | 2,352,255 | 5,310,182 | 2,044,224 | |||||||||
Cash paid for interest expense | 992,556 | 923,699 | 576,097 | |||||||||
Supplemental disclosures of non-cash information: | ||||||||||||
Lease liabilities arising from obtaining right-of-use assets | 183,839 | 15,225 | 39,947 | |||||||||
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SOURCE Wing Yip Food Holdings Group Limited
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