$Yihai International (01579.HK) $The group reported interim results in 2019, with revenue of 1.656 billion yuan (the same as below), an increase of 64.9% over the same period last year. The gross profit was 624 million yuan, an increase of 72.0% over the same period last year. The net profit was 292 million yuan, an increase of 54.1% over the same period last year. The net profit attributable to the owners of the company was 270 million yuan, an increase of 46.5% over the same period last year. The basic earnings per share is 27.88 cents, no dividend is paid.

The announcement shows that during the period, the group's three main products: hot pot seasoning, Chinese compound seasoning and convenient fast food showed a rapid growth compared with the same period in 2018. As of June 30, 2019, the company has a total of 59 hot pot seasoning products, 35 Chinese composite seasoning products, 11 convenient fast food products.

Revenue from hot pot seasoning products increased by 41.4 per cent year-on-year to 1.0878 billion yuan in 2019, accounting for 65.7 per cent of revenue during the period. Among them, revenue from selling hot pot seasoning products to related parties increased by 32.6%, and revenue from selling hot pot seasoning products to third parties increased by 60.3%.

The growth of revenue from selling hot pot seasoning products to related parties is mainly affected by the steady growth of Haidilao International Holding's (06862) performance and the increase in the number of restaurants. With the further deepening of the group's channel management of third-party dealers, the innovation of internal sales incentive mechanism, the sinking of sales area, the effective innovation of channel marketing, and the promotion of terminal sales efficiency, coupled with the launch of new products, the growth rate of third-party sales continues to record a relatively rapid growth.

It is worth noting that in terms of e-commerce sales channels, the group's online sales increased by 46.9% to 117.8 million yuan in the six months ended June 30, 2019, up from 80.2 million yuan in the same period in 2018.

Attached:Original text of Yihai International report PDF