On July 14, 2023, I would like you to issue a half-year performance forecast for 2023.

Main points of investment

The performance is in line with expectations, and the increase in expenses puts pressure on profits.

According to the performance forecast, 2023H1 returns a net profit loss of 0.1-20 million yuan, deducting a non-net profit loss of 0.41-54 million yuan. Among them, the net profit loss of 2023Q2 is 0.22-32 million yuan, and the non-net profit loss is 0.32-45 million yuan. The results are in line with expectations, mainly as follows: 1) steady revenue growth, setting up a growth committee to develop incremental business; 2) focusing on creating large strategic items dominated by Hongxiaopai to create the company's second growth curve; 3) promoting all-channel construction, fast development and other new e-commerce to keep online jujube sales first, new offline convenience stores, snack vendors and other channels; 4) online new media publicity efforts 5) the interest rate of bank deposits decreases, and the decrease of interest income leads to the increase of financial expenses; 6) the amount of impairment loss of assets increases as well.

Organizational structure optimization and upgrading, product + channel is expected to accelerate the volume

Organizational structure: set up a growth committee to open up the second growth curve, Red faction. Product end: increase leisure and health food on the basis of high-end gifts, red pie to make process changes, packaging upgrading, omni-channel volume; develop vitamin C jujube, bean flower and bean phenanthrene products, layout snack volume vendors and other new channels. Brand end: adhere to the brand positioning of "high-end jujube miss you", like your main brand to focus on high-end jujube, multi-brand layout "red jujube + healthy locked fresh food" product matrix. Energy production side: at present, it has strong supply chain resources and is expected to achieve cost dilution through omni-channel volume.

Profit forecast

It is estimated that the EPS for 2023-2025 will be 0.11 yuan for 0.07 EPS, and the current share price will be 74 times for 954 PE, respectively, maintaining the "buy" investment rating.

Risk hint

Macroeconomic downside risks, raw material rising risks, less-than-expected growth of new products, etc.